Company registration number 03952398 (England and Wales)
THE ENGLISH CHEESECAKE COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
THE ENGLISH CHEESECAKE COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr P Weldon
Mr A Laurier
Mr J Laurier
Company number
03952398
Registered office
Unit 1 North, Oxgate Centre
Oxgate Lane
London
NW2 7JA
Auditor
Gravita Audit Limited
THE ENGLISH CHEESECAKE COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 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
Statement of cash flows
11
Notes to the financial statements
12 - 25
THE ENGLISH CHEESECAKE COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -
The directors present the strategic report for the year ended 31 March 2025.
Review of the business
The company made a net profit for the year of £1,125,194 (2024: £925,622) on turnover of £22,790,585 (2024: £19,782,323). 2025 saw sales growth with the expansion to more grocers and introduction of new product lines.
The gross profit margins improved as the production volumes increased and improved procurement of raw materials. The net asset position of the company is £2,374,775 (2024: £1,502,080).
Principal risks and uncertainties
The principal risks and uncertainties facing the company are as follows:
In the current climate, raw materials and energy prices are fluctuating. Procurement strategies are in place to mitigate this rise as far possible.
The company operates in a competitive market environment and the development of new product ranges is key to it's success. The company is focused on customer care and maintains strong relationships with its customers and has a new product development team focussed on innovation products and recipes.
The company’s expansion had been financed by cash inflows and the servicing of the bank borrowings which is subject to increases in the bank base rate.
Food safety is a priority in line with BRC requirements and the company’s technical team undertake regular assessments that cover product quality and safety.
Future developments
The directors expect an improvement in profitability in the coming period resulting from increasing the sales, broadly maintaining gross margins and controlling overhead costs. The directors will focus on increasing capacity of the manufacturing site by streamlining operations and further capital investment.
Key performance indicators
The directors consider revenue growth, gross profit margin and EBITDA to be the key performance indictors.
Revenue:
Revenue for the year ended 31st March 2025 was £22,790,585 (2024: £19,782,323), an increase of 15.2%.
Gross profit margin:
The gross profit margin for the year ended 31st March 2025 was 40.4% (2024: 37.7%).
EBITDA:
The EBITDA for the year ended 31st March 2025 was £1,979,138 (2024: £1,769,172).
Mr A Laurier
Director
23 July 2025
THE ENGLISH CHEESECAKE COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2025.
Principal activities
The principal activity of the company continued to be that of wholesale and retail sales of desserts.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £252,499. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P Weldon
Mr A Laurier
Mr J Laurier
Financial instruments
Financial risk management objectives and policies
The company’s activities expose it to a number of financial risks including liquidity risk, interest rate risk and credit risk.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
Credit risk
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Post reporting date events
There are no other significant adjusting or non-adjusting events between the reporting date and the date of authorisation of these financial statements.
Future developments
In accordance with section 414C(11) of the Companies Act 2006, the Company has included certain disclosures required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 in the Strategic Report. These disclosures include "future developments", which the Directors consider to be of strategic importance.
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.
THE ENGLISH CHEESECAKE COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
On behalf of the board
Mr A Laurier
Director
23 July 2025
THE ENGLISH CHEESECAKE COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 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 financials statements; and
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.
THE ENGLISH CHEESECAKE COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE ENGLISH CHEESECAKE COMPANY LIMITED
- 5 -
Opinion
We have audited the financial statements of The English Cheesecake Company Limited (the "company") for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2025 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.
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 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.
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 our 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.
THE ENGLISH CHEESECAKE COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE ENGLISH CHEESECAKE COMPANY LIMITED (CONTINUED)
- 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.
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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Health and Safety, including Food Safety, and taxation legislation.
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, legal team and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
THE ENGLISH CHEESECAKE COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE ENGLISH CHEESECAKE COMPANY LIMITED (CONTINUED)
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
understanding the business model as part of the control and business environment;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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.
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.
Sudhir Rawal FCA (Senior Statutory Auditor)
For and on behalf of Gravita Audit Limited, Statutory Auditor
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA
23 July 2025
THE ENGLISH CHEESECAKE COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
as restated
Notes
£
£
Turnover
3
22,790,585
19,782,322
Cost of sales
(13,577,853)
(12,322,636)
Gross profit
9,212,732
7,459,686
Distribution costs
(3,349,330)
(2,855,747)
Administrative expenses
(4,297,128)
(3,173,248)
Other operating income
54,693
Operating profit
4
1,620,967
1,430,691
Interest receivable and similar income
8
11,659
1,858
Interest payable and similar expenses
9
(118,144)
(160,356)
Profit before taxation
1,514,482
1,272,193
Tax on profit
10
(389,288)
(346,571)
Total comprehensive income for the year
1,125,194
925,622
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE ENGLISH CHEESECAKE COMPANY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,913,735
1,861,728
Current assets
Stocks
13
2,335,786
1,111,964
Debtors
14
4,321,105
3,553,813
Cash at bank and in hand
84,896
18,967
6,741,787
4,684,744
Creditors: amounts falling due within one year
15
(5,232,294)
(3,817,390)
Net current assets
1,509,493
867,354
Total assets less current liabilities
3,423,228
2,729,082
Creditors: amounts falling due after more than one year
Loans and overdrafts
16
324,028
509,692
Obligations under finance leases
17
22,671
30,437
(346,699)
(540,129)
Provisions for liabilities
Provisions
18
528,519
495,402
Deferred tax liability
19
173,235
191,471
(701,754)
(686,873)
Net assets
2,374,775
1,502,080
Capital and reserves
Called up share capital
21
186
186
Profit and loss reserves
2,374,589
1,501,894
Total equity
2,374,775
1,502,080
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 23 July 2025 and are signed on its behalf by:
Mr A Laurier
Director
Company registration number 03952398 (England and Wales)
THE ENGLISH CHEESECAKE COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2023
186
891,242
891,428
Year ended 31 March 2024:
Profit and total comprehensive income
-
925,622
925,622
Dividends
11
-
(314,970)
(314,970)
Balance at 31 March 2024
186
1,501,894
1,502,080
Year ended 31 March 2025:
Profit and total comprehensive income
-
1,125,194
1,125,194
Dividends
11
-
(252,499)
(252,499)
Balance at 31 March 2025
186
2,374,589
2,374,775
THE ENGLISH CHEESECAKE COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,346,853
1,744,257
Interest paid
(85,027)
(151,653)
Income taxes (paid)/refunded
(353,352)
50,303
Net cash inflow from operating activities
908,474
1,642,907
Investing activities
Purchase of tangible fixed assets
(410,178)
(162,697)
Interest received
11,659
1,858
Net cash used in investing activities
(398,519)
(160,839)
Financing activities
Repayment of bank loans
(185,831)
(96,210)
Payment of finance leases obligations
(5,696)
Dividends paid
(252,499)
(314,970)
Net cash used in financing activities
(444,026)
(411,180)
Net increase in cash and cash equivalents
65,929
1,070,888
Cash and cash equivalents at beginning of year
18,967
(1,051,921)
Cash and cash equivalents at end of year
84,896
18,967
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
1
Accounting policies
Company information
The English Cheesecake Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 North, Oxgate Centre, Oxgate Lane, London, NW2 7JA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis after due consideration of the principal risks and uncertainties disclosed in the strategic report. In reaching their conclusion the directors have considered the financial position of the company including its borrowing facilities and covenants.true
The directors have reviewed the forecasts for the next 12 months, the forecasts have been subject to a sensitive analysis and demonstrate that the company is projected to generate profits and cash in flows, and the company has sufficient liquidity to enable it to meet its obligations as they fall due for a period of at least twelve months from the date of signing these financial statements.
Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods net of VAT, trade discounts, volume rebates and promotion costs.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
10% straight line
Plant and machinery
10% straight line
Fixtures, fittings & equipment
10% straight line
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
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
Borrowing costs
All borrowing costs are recognised within interest payable and similar expenses in the profit and loss account in the period in which they are incurred. These costs include interest expense calculated using the effective interest rate.
1.7
Impairment of fixed assets
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans 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.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
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.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
1.16
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.
1.17
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. This obligation may be legal or constructive deriving from regulations, contracts, normal practices or public commitments that lead third parties to reasonably expect that the company will assume certain responsibilities.
The amount of the provision is determined based on the best estimate of the outflow of resources required to settle the obligation, taking into account all available information.
No provision is recognised if the amount of liability cannot be estimated reliably. In this case, the relevant information is disclosed in the notes to the financial statements.
Given the uncertainties inherent in the estimates used to determine the amount of provision, actual outflows of resources may differ from the amounts recognised originally on the basis of estimates.
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2025
2024
restated
£
£
Turnover analysed by class of business
Dessert sales
22,790,585
19,782,323
2025
2024
restated
£
£
Turnover analysed by geographical market
UK
22,790,585
19,782,323
2025
2024
£
£
Other revenue
Interest income
11,659
1,858
Promotion costs of £799,043 have been reclassified from Distribution Costs to Turnover in the prior year Profit & Loss account to be on a comparable basis to the current financial year.
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Exchange losses
4,436
588
Research and development costs
-
26,084
Depreciation of owned tangible fixed assets
358,171
325,509
(Profit)/loss on disposal of tangible fixed assets
-
12,972
Operating lease charges
301,297
324,478
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
25,900
23,400
For other services
Taxation compliance services
2,150
2,000
All other non-audit services
3,500
2,000
5,650
4,000
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Production - direct and indirect
123
139
Sales, technical, management and administration
55
26
Total
178
165
Their aggregate remuneration comprised:
2025
2024
£
£
Wages and salaries
5,353,992
4,442,339
Social security costs
428,307
374,606
Pension costs
173,973
171,966
5,956,272
4,988,911
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
207,532
179,981
Company pension contributions to defined contribution schemes
121,321
121,321
328,853
301,302
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
132,419
123,269
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
9,738
232
Other interest income
1,921
1,626
Total income
11,659
1,858
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
9
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
79,396
106,790
Other interest on financial liabilities
36,678
52,868
Interest on finance leases and hire purchase contracts
2,070
698
118,144
160,356
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
407,524
349,812
Deferred tax
Origination and reversal of timing differences
(18,236)
(3,241)
Total tax charge
389,288
346,571
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2025
2024
£
£
Profit before taxation
1,514,482
1,272,193
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
378,621
318,048
Tax effect of expenses that are not deductible in determining taxable profit
10,818
8,464
Permanent capital allowances in excess of depreciation
18,085
23,300
Deferred tax movement
(18,236)
(3,241)
Taxation charge for the year
389,288
346,571
11
Dividends
2025
2024
£
£
Interim paid
252,499
314,970
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
12
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 April 2024
2,259,341
1,935,290
380,215
4,574,846
Additions
207,648
165,768
36,762
410,178
Disposals
(199,604)
(199,604)
At 31 March 2025
2,466,989
2,101,058
217,373
4,785,420
Depreciation and impairment
At 1 April 2024
1,193,540
1,254,315
265,263
2,713,118
Depreciation charged in the year
136,067
145,877
76,227
358,171
Eliminated in respect of disposals
(199,604)
(199,604)
At 31 March 2025
1,329,607
1,400,192
141,886
2,871,685
Carrying amount
At 31 March 2025
1,137,382
700,866
75,487
1,913,735
At 31 March 2024
1,065,801
680,975
114,952
1,861,728
13
Stocks
2025
2024
£
£
Raw materials and consumables
925,009
665,070
Finished products
1,410,777
446,894
2,335,786
1,111,964
The replacement cost of the above stock would not be significantly different from the values stated.
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,525,320
3,064,515
Other debtors
446,375
348,160
Prepayments and accrued income
349,410
141,138
4,321,105
3,553,813
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
15
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans
16
184,898
185,065
Obligations under finance leases
17
7,766
5,696
Trade creditors
2,879,576
1,943,418
Corporation tax
403,984
349,812
Other taxation and social security
131,507
113,479
Other creditors
953,782
512,564
Accruals and deferred income
670,781
707,356
5,232,294
3,817,390
Other creditors includes £598,597 (2024: £172,632) due under an invoicing discounting facility. The facility is for £2,500,000 and bears interest at 1.85% over the base rate. The agreement is due for renewal in November 2025.
16
Loans and overdrafts
2025
2024
£
£
Bank loans
508,926
694,757
Payable within one year
184,898
185,065
Payable after one year
324,028
509,692
The bank loan is repayable in 16 quarterly instalments which began in February 2024. The interest rate of the loan is 3.5% over bank base rate.
The borrowings are secured by a fixed and floating charge over the assets of the company and £100,000 guarantee given jointly by the directors P Weldon and A Laurier.
17
Hire purchase obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
5,696
5,696
In two to five years
24,741
30,437
30,437
36,133
Finance lease payments represent rentals payable by the company for certain items of plant and machinery.
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
18
Provisions for liabilities
2025
2024
£
£
Other provisions
528,519
495,402
Movements on provisions:
Other provisions
£
At 1 April 2024
495,402
Unwinding of discount
33,117
At 31 March 2025
528,519
Included in provisions are amounts for property dilapidations in relation to the factory lease which runs to April 2032. The amount payable at the end of the lease will be subject to negotiations at that stage. The directors have estimated the provision based on current expectations and expert advice.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances and losses
173,235
191,471
2025
Movements in the year:
£
Liability at 1 April 2024
191,471
Credit to profit or loss
(18,236)
Liability at 31 March 2025
173,235
Deferred tax has been computed at the rate of 25% (2024: 25%).
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
20
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
173,973
171,966
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.
21
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
15,074
15,074
151
151
Ordinary B shares of 1p each
1,860
1,860
18
18
Ordinary C shares of 1p each
2
2
-
-
Ordinary D shares of 1p each
1,676
1,676
17
17
18,612
18,612
186
186
Ordinary A shares have 100% voting rights. Ordinary B, C and D shares have no voting rights.
Ordinary A and D shares are entitled to dividends which may be declared on either class separately.
Ordinary B and C shares carry no dividend rights but have the right to a return of capital on an exit or on winding up.
On 12 August 2024, the company granted EMI options on 65 A Ordinary shares with an exercise price of £109.48 per share. The options vest and are to be exercised on the sale of the shares of the company. No expense for share based payments has been recognised in the year as this would cumulatively be considered immaterial.
22
Operating lease commitments
As lessee
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:
2025
2024
£
£
Within 1 year
305,692
285,124
Years 2-5
1,175,248
1,140,496
After 5 years
576,764
855,372
2,057,704
2,280,992
The operating leases represent leases of property and vehicles from third parties. The leases are negotiated over terms of 4-7 years and property rentals are fixed for 2-5 years. The property leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
23
Events after the reporting date
The directors are of the opinion that there were no significant adjusting or non-adjusting events occurring after the reporting date.
24
Related party transactions
Key management remuneration
The directors of the company are considered to constitute the Key Management Personnel. Details of their remuneration is disclosed in note 7 of these financial statements.
25
Directors' transactions
Dividends totalling £252,499 (2024: £314,970) were paid in the year to the directors of the company.
During the year, the company made advances to the Director A Laurier, totaling £61,764. The balance owed by the director at 31 March 2025 was £63,122 (2024 £8,587 owed to the director). Interest of £1,291 was charged on the overdrawn balance during the year. This balance was repaid with interest of £1,294 on 14 May 2025.
At the year end, the company owed £nil (2024: £16,198) to P Weldon in respect of an interest free loan repayable on demand.
26
Control
The company is controlled by P Weldon, a director holding a beneficial majority shareholding.
27
Cash generated from operations
2025
2024
£
£
Profit after taxation
1,125,194
925,622
Adjustments for:
Taxation charged
389,288
346,571
Finance costs
85,027
151,653
Investment income
(11,659)
(1,858)
(Gain)/loss on disposal of tangible fixed assets
-
12,972
Depreciation and impairment of tangible fixed assets
358,171
325,509
Increase in provisions
33,117
8,703
Movements in working capital:
(Increase)/decrease in stocks
(1,223,822)
932,390
Increase in debtors
(767,292)
(781,265)
Increase/(decrease) in creditors
1,358,829
(176,040)
Cash generated from operations
1,346,853
1,744,257
THE ENGLISH CHEESECAKE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 25 -
28
Analysis of changes in net debt
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
18,967
65,929
84,896
Borrowings excluding overdrafts
(694,757)
185,831
(508,926)
Lease liabilities
(36,133)
5,696
(30,437)
(711,923)
257,456
(454,467)
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