Company registration number NI618471 (Northern Ireland)
GOURMET ISLAND LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
GOURMET ISLAND LTD
COMPANY INFORMATION
Directors
Mr Michael Rooney
Mr Plunkett Matthews
Company number
NI618471
Registered office
Unit 10 Ballinacraig Way
Greenbank Industrial Estate
Newry
UK
BT34 2 QX
Auditor
Harbinson Mulholland
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
Bankers
Bank of Ireland
12 Trevor Hill
Newry
Co. Down
BT34 1DT
Solicitors
Elliot - Trainor Partnership Solicitors
3 Downshire Road
Newry
BT34 1EE
GOURMET ISLAND LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
GOURMET ISLAND LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The principal activity of the company continued to be the processing of frozen value-added meat products for sale to retailers and foodservice customers.

 

The directors consider the results for the year and the financial position at the end of the year to be satisfactory, in line with expectations and to have been achieved in a challenging operating environment. The directors closely monitor the performance of the company, through monitoring of monthly management accounts and regular management meetings. The directors are satisfied that the company is continuing to generate trading profits.

Principal risks and uncertainties

The key business risks and uncertainties affecting the company are considered to relate to competition within the market, availability of labour supply and general economic conditions. Due to the company's reputation and standing in the marketplace, and effective management strategies, the directors believe that the risks and uncertainties facing the company can be adequately managed.

 

Financial risk management

The company’s operations expose it to a variety of financial risks that include the effects of changes in foreign exchange risk, credit risk, liquidity risk and interest rate risk. The company monitors and manages risks to limit any adverse effects on the financial performance of the company.

 

Foreign exchange risk

The company faces exposure to foreign exchange fluctuations due to it undertaking transactions in currencies other than its functional currency, particularly euros. The company ensures that pricing strategies are effective in mitigating the risk of exposure to foreign exchange fluctuations.

 

Credit risk

The company has implemented policies to ensure there is effective credit control over the amounts owed to the company. The amount of exposure to individual companies is subject to a limit which is monitored regularly to ensure it remains appropriate.

 

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The company actively maintains facilities for a mixture of long-term and short-term debt finance to ensure the company has sufficient available funds for operations and planned expansions.

 

Interest rate risk

The company finances its operations through a mixture of retained profits, bank and other borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed through annual review of its borrowing requirements and ensuring finance facilities are tailored to the company’s needs.

Key performance indicators

Key performance indicators used by the directors include turnover which has increased, pro-rata from the prior financial period and gross margin which increased to 21.3% (2023: 20.1%).

 

The company continues to monitor these indicators on a regular basis.

On behalf of the board

Mr Plunkett Matthews
Director
1 May 2025
GOURMET ISLAND LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be processing of meat products for sale to retailers and food service customers.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. 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 Michael Rooney
Mr Plunkett Matthews
Statement of directors' responsibilities

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:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

GOURMET ISLAND LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
On behalf of the board
Mr Plunkett Matthews
Director
1 May 2025
GOURMET ISLAND LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GOURMET ISLAND LTD
- 4 -
Opinion

We have audited the financial statements of Gourmet Island Ltd (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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:

GOURMET ISLAND LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GOURMET ISLAND LTD (CONTINUED)
- 5 -
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:

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.

GOURMET ISLAND LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GOURMET ISLAND LTD (CONTINUED)
- 6 -

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:

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 Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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;

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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

GOURMET ISLAND LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GOURMET ISLAND LTD (CONTINUED)
- 7 -

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Darren McDowell (Senior Statutory Auditor)
For and on behalf of Harbinson Mulholland, Statutory Auditors
Chartered Accountants
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
1 May 2025
GOURMET ISLAND LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Year
13 month period
ended
ended
31 December
31 December
2024
2023
Notes
£
£
Turnover
3
12,222,223
12,607,644
Cost of sales
(9,623,931)
(10,071,829)
Gross profit
2,598,292
2,535,815
Administrative expenses
(1,894,889)
(1,698,235)
Other operating income
20,103
22,468
Operating profit
4
723,506
860,048
Interest payable and similar expenses
7
(65,389)
(108,584)
Profit before taxation
658,117
751,464
Tax on profit
8
(198,779)
(240,199)
Profit for the financial year
459,338
511,265

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GOURMET ISLAND LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Year
Period
ended
ended
2024
2023
£
£
Profit for the year
459,338
511,265
Other comprehensive income
Tax relating to other comprehensive income
1,625
(14,899)
Total comprehensive income for the year
460,963
496,366
GOURMET ISLAND LTD
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
4,293,291
3,907,870
Current assets
Stocks
10
2,576,087
2,371,184
Debtors
11
1,693,675
1,821,147
Cash at bank and in hand
373,368
5,011
4,643,130
4,197,342
Creditors: amounts falling due within one year
12
(3,965,788)
(3,781,280)
Net current assets
677,342
416,062
Total assets less current liabilities
4,970,633
4,323,932
Creditors: amounts falling due after more than one year
13
(606,632)
(597,946)
Provisions for liabilities
Deferred tax liability
16
844,668
647,514
(844,668)
(647,514)
Government grants
17
(247,862)
(267,964)
Net assets
3,271,471
2,810,508
Capital and reserves
Called up share capital
19
1
1
Revaluation reserve
239,684
244,559
Profit and loss reserves
3,031,786
2,565,948
Total equity
3,271,471
2,810,508

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 1 May 2025 and are signed on its behalf by:
Mr Plunkett Matthews
Director
Company registration number NI618471 (Northern Ireland)
GOURMET ISLAND LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 December 2022
1
266,500
2,047,641
2,314,142
Period ended 31 December 2023:
Profit
-
-
511,265
511,265
Other comprehensive income:
Tax relating to other comprehensive income
-
(14,899)
-
0
(14,899)
Total comprehensive income
-
(14,899)
511,265
496,366
Transfers
-
(7,042)
7,042
-
Balance at 31 December 2023
1
244,559
2,565,948
2,810,508
Year ended 31 December 2024:
Profit
-
-
459,338
459,338
Other comprehensive income:
Tax relating to other comprehensive income
-
1,625
-
0
1,625
Total comprehensive income
-
1,625
459,338
460,963
Transfers
-
(6,500)
6,500
-
Balance at 31 December 2024
1
239,684
3,031,786
3,271,471
GOURMET ISLAND LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,406,704
1,105,187
Interest paid
(65,389)
(108,584)
Net cash inflow from operating activities
1,341,315
996,603
Investing activities
Purchase of tangible fixed assets
(651,855)
(911,466)
Net cash used in investing activities
(651,855)
(911,466)
Financing activities
Repayment of bank loans
(100,251)
(150,802)
Finance lease received less repayments
118,276
256,866
Net cash generated from financing activities
18,025
106,064
Net increase in cash and cash equivalents
707,485
191,201
Cash and cash equivalents at beginning of year
(1,204,260)
(1,395,461)
Cash and cash equivalents at end of year
(496,775)
(1,204,260)
Relating to:
Cash at bank and in hand
373,368
5,011
Bank overdrafts included in creditors payable within one year
(870,143)
(1,209,271)
GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Gourmet Island Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is Unit 10 Ballinacraig Way, Greenbank Industrial Estate, Newry, UK, BT34 2 QX.

1.1
Reporting period

The company’s reporting period changed in the previous accounting period. The comparative amounts presented in the financial statements (including the related notes) were presented for a 13 month period and are therefore not entirely comparable due to the shorter financial period for the year end 31 December 2024.

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 £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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.

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

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:

Freehold land and buildings
2% Straight Line
Plant and equipment
3% - 20% Straight Line.
Fixtures and fittings
10% - 20% Straight Line.
Computer Software
5% - 20% Straight Line.

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.

1.7
Stocks

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

 

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

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

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.

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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.

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.

1.12
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.

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.

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
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.

3
Turnover and other revenue

The whole of the turnover is attributable to the principal activity of the business.

 

The directors have chosen not to disclose turnover per geographical location as it would be prejudicial to the company's interests.

 

2024
2023
£
£
Other revenue
Grants received
20,103
22,468
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
19,443
24,291
Government grants
(20,103)
(22,468)
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
10,000
Depreciation of owned tangible fixed assets
246,034
233,348
Depreciation of tangible fixed assets held under finance leases
20,400
15,017
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
46
39
GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,325,490
1,162,126
Social security costs
135,416
115,120
Pension costs
26,261
23,191
1,487,167
1,300,437
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
157,616
148,427
Company pension contributions to defined contribution schemes
1,854
-
159,470
148,427
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
65,389
108,584
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
163,358
287,545
Adjustment in respect of prior periods
35,421
(47,346)
Total deferred tax
198,779
240,199
GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 20 -

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:

2024
2023
£
£
Profit before taxation
658,117
751,464
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.17%)
164,529
174,092
Permanent capital allowances in excess of depreciation
(101,221)
(133,835)
Other non-reversing timing differences
(4,716)
7,845
Other permanent differences
(1,171)
(4,799)
Deferred tax adjustments in respect of prior years
35,421
-
0
Utilisation of tax losses
(57,421)
(43,303)
Deferred tax
163,358
240,199
Taxation charge for the year
198,779
240,199

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
(1,625)
14,899
GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computer Software
Total
£
£
£
£
£
Cost or valuation
At 1 January 2024
1,205,345
3,302,601
431,631
169,152
5,108,729
Additions
44,028
399,028
163,531
45,268
651,855
Disposals
-
0
-
0
(2,981)
-
0
(2,981)
At 31 December 2024
1,249,373
3,701,629
592,181
214,420
5,757,603
Depreciation and impairment
At 1 January 2024
19,862
1,009,766
143,754
27,477
1,200,859
Depreciation charged in the year
20,261
195,433
38,099
12,641
266,434
Eliminated in respect of disposals
-
0
-
0
(2,981)
-
0
(2,981)
At 31 December 2024
40,123
1,205,199
178,872
40,118
1,464,312
Carrying amount
At 31 December 2024
1,209,250
2,496,430
413,309
174,302
4,293,291
At 31 December 2023
1,185,483
2,292,835
287,877
141,675
3,907,870

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
586,366
355,766

Land and buildings were revalued in 2016. The directors believe the value of land and buildings included in these financial statements is representative of fair value as at 31 December 2024.

If the assets in land and buildings were measured using the cost model, the carrying amounts would be £897,791.

10
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,576,087
2,371,184
GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,468,218
1,595,721
Other debtors
60,672
76,875
Prepayments and accrued income
164,785
148,551
1,693,675
1,821,147
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
975,323
1,349,760
Obligations under finance leases
15
118,641
73,993
Trade creditors
1,373,335
1,287,074
Taxation and social security
38,958
39,781
Other creditors
1,182,170
769,402
Accruals and deferred income
277,361
261,270
3,965,788
3,781,280

The invoice finance facility is secured over the book debts of the company.

 

Included in other creditors is a balance for a Stockline facility, relating to specific purchase transactions. The balance is secured against the stock purchased with the facility.

 

A director’s current account balance of £477,327 (2023: £503,213) is included in other creditors at year end. This amount is unsecured, interest-free, and repayable on demand.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
350,132
415,074
Obligations under finance leases
15
256,500
182,872
606,632
597,946
GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
14
Loans and overdrafts
2024
2023
£
£
Bank loans
455,312
555,563
Bank overdrafts
870,143
1,209,271
1,325,455
1,764,834
Payable within one year
975,323
1,349,760
Payable after one year
350,132
415,074

The long-term loans are secured by way of:

- A debenture over the assets and undertakings of the company;

- First legal Mortgage/Charge over the property at Unit 10 and over the leasehold interest

in the site adjacent to Unit 10;

- Fixed charge over property Unit 9, 11A Ballinacraig Way, Greenbank Industrial Estate

- A Chattels Mortgage over various processing and packaging line machinery; and

- A personal guarantee from Plunkett Matthews, director, of £700,000.

At the balance sheet date, the company had the following borrowings in place:

An overdraft facility bearing interest at a margin of 3.0% over base rate. The facility is repayable on demand.

Loans with 7 year terms, with interest payable at a margin of 3.0% over LIBOR/Base rate. Repayments are made in regular instalments over the term of the loan.

A loan under the Coronavirus Business Interruption Loan Scheme (CBILS). Interest is payable at a margin of 3.5% over base rate. The loan is repayable in regular instalments.

 

 

 

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
118,641
73,993
In two to five years
256,500
182,872
375,141
256,865

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
777,033
620,634
Tax losses
(389)
(38,053)
Revaluations
71,774
73,399
Timing differences
(3,750)
(8,466)
844,668
647,514
2024
Movements in the year:
£
Liability at 1 January 2024
647,514
Charge to profit or loss
198,779
Credit to other comprehensive income
(1,625)
Liability at 31 December 2024
844,668

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

17
Government grants
2024
2023
£
£
Arising from government grants
247,862
267,964
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,261
23,191

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.

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1
1
1
1
20
Financial commitments, guarantees and contingent liabilities

A contingent liability exists to repay government grants received should certain conditions under which they were awarded cease to be met.

21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
-
0
39,931
550,945
-
The following amounts were outstanding at the reporting end date:
2024
2023
£
£
Other related parties
262,369
-
262,369
-

 

GOURMET ISLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
22
Cash generated from operations
2024
2023
£
£
Profit after taxation
459,338
511,265
Adjustments for:
Taxation charged
198,779
240,199
Finance costs
65,389
108,584
Depreciation and impairment of tangible fixed assets
266,434
248,365
(Decrease)/increase in deferred income
(20,102)
25,663
Movements in working capital:
(Increase)/decrease in stocks
(204,903)
573,989
Decrease/(increase) in debtors
127,472
(180,876)
Increase/(decrease) in creditors
514,297
(422,002)
Cash generated from operations
1,406,704
1,105,187
23
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
5,011
368,357
373,368
Bank overdrafts
(1,209,271)
339,128
(870,143)
(1,204,260)
707,485
(496,775)
Borrowings excluding overdrafts
(555,563)
100,251
(455,312)
Obligations under finance leases
(256,865)
(118,276)
(375,141)
(2,016,688)
689,460
(1,327,228)
24
Events after the reporting date

There were no events occurring after the balance sheet date of 31 December 2024, which the directors consider would require adjustment to the financial statements or additional disclosures.

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