Company registration number 06099534 (England and Wales)
KOSHER DELI (UK) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KOSHER DELI (UK) LTD
COMPANY INFORMATION
Directors
H Klein
A Bendahan
Company number
06099534
Registered office
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
Auditor
Grunberg & Co Limited
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
KOSHER DELI (UK) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 27
KOSHER DELI (UK) 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 directors are pleased to report that the turnover has increased during the year from £12.5 in 2023 to £13.1m in 2024. The profit has reduced however due to rise in cost of direct goods and labour.
Although, the company’s customer base in Europe and Globally is expanding, the margin for these customers is lower than the UK customers. This means that despite of an increase in turnover, the net profit will not always increase in line with turnover.
There has also been an increased in cost of labour as the company sourced more temporary staff through employment agencies to meet seasonal demands. The intention behind this was to mitigate risks of not having enough staff during times when holidays need to be taken by the regular staff as well as to meet demands during the peak seasons. Upon reflection and cost analysis, the company is planning to reduce the number of agency staffs and rather increase permanent staff and only use the agency as a way of filling in gaps during holidays and peak seasons.
The main key performance indicators which are used by management to monitor performance on a daily, weekly, and monthly basis are sales of meats, labour and direct costs associates with those sales.
The financial position of the company, its cash flows and liquidity position, are shown in the balance sheet, cash flow statement and subsequent notes.
The directors have assessed the company's working capital requirements and capital expenditure over the next twelve months and are confident that the company has secured sufficient financial resources to fund all planned expenditure. Therefore, the directors believe that the company is well placed to manage its business risks successfully despite the difficult current economic climate.
Principal risks and uncertainties
The main risks and uncertainties that could potentially impact the financial performance of the company are as follows:
a) The company uses a variety of financial instruments, including cash, loans, inter-company debt and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to provide working capital for the company's operations.
b) Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities and is primarily associated with trade creditors and bank loans. The company aims to mitigate liquidity risk by managing cash generation by its operations, the use of cash flow forecast to monitor funding requirements and by ensuring sufficient financing arrangements are in place.
c) Credit risk is managed by ensuring that credit terms are only granted to customer who demonstrate an appropriate payment history and satisfy credit worthiness procedures.
d) Potential risks that the business faces include overcapacity in the sector and the availability of future livestock herds in Britain and Poland. The sector is also exposed to animal welfare food safety concerns.
Development and performance
The directors are continually seeking for opportunities to expand either through organic growth or by acquisition.
The company’s cashflow has improved due to tightening of credit control as well as increasing sale prices as they experience increases from their suppliers, this is especially true for the supermarkets who have always commanded a longer credit term as well lower prices.
Animal welfare and food safety concerns continue to be a risk they will have to regularly manage in terms of increases in live animal costs due to country-wide animal illnesses. Also, due to competition, the company is not always able to increase prices to customers as quickly as they are increased to them.
In 2025, they are looking to focus on finding alternative beef suppliers either by finding other kosher slaughter productions in Europe or setting up their own. This is to mitigate the sharply increasing cost of beef supply from Poland and the UK which they have experienced over the 2023-2024 period.
KOSHER DELI (UK) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
H Klein
Director
31 July 2025
KOSHER DELI (UK) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
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 that of kosher meat trading.
Results and dividends
The results for the year are set out on page 9.
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:
H Klein
A Bendahan
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
KOSHER DELI (UK) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
H Klein
Director
31 July 2025
KOSHER DELI (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KOSHER DELI (UK) LTD
- 5 -
Opinion
We have audited the financial statements of Kosher Deli (UK) Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
KOSHER DELI (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KOSHER DELI (UK) LTD (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.
KOSHER DELI (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KOSHER DELI (UK) LTD (CONTINUED)
- 7 -
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, across the UK and whether the financial results of our client differed from the industry trends;
- the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements;
- the matters discussed among the audit engagement team during the planning process regarding how and where fraud might occur in the financial statement and any potential indicators of fraud.
Audit procedures performed included the reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; discussions with the directors' on their own assessment of the risks that irregularities may occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were aware of any instances of non-compliance, including any potential litigation or claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; inspection of relevant legal correspondence and board minutes; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect on the financial statements included the UK Companies Act, Employment Laws, Tax and Pensions legislation and Health & Safety legislation.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 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.
KOSHER DELI (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KOSHER DELI (UK) LTD (CONTINUED)
- 8 -
Herman Hang ACCA
Senior Statutory Auditor
For and on behalf of Grunberg & Co Limited
31 July 2025
Chartered Accountants
Statutory Auditor
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
KOSHER DELI (UK) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
13,144,554
12,540,447
Cost of sales
(7,034,294)
(6,335,589)
Gross profit
6,110,260
6,204,858
Administrative expenses
(5,726,185)
(5,610,654)
Other operating income
46,995
51,860
Operating profit
4
431,070
646,064
Interest receivable and similar income
7
317
41,250
Interest payable and similar expenses
8
(246,742)
(266,742)
Profit before taxation
184,645
420,572
Tax on profit
9
(180,645)
(107,674)
Profit for the financial year
4,000
312,898
The income statement has been prepared on the basis that all operations are continuing operations.
KOSHER DELI (UK) LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,212,216
11,264,745
Current assets
Stocks
12
214,196
378,004
Debtors
13
3,385,388
2,389,673
Cash at bank and in hand
85,097
124,868
3,684,681
2,892,545
Creditors: amounts falling due within one year
14
(2,674,745)
(1,917,220)
Net current assets
1,009,936
975,325
Total assets less current liabilities
12,222,152
12,240,070
Creditors: amounts falling due after more than one year
15
(4,318,695)
(4,509,292)
Provisions for liabilities
Deferred tax liability
18
877,800
709,121
(877,800)
(709,121)
Net assets
7,025,657
7,021,657
Capital and reserves
Called up share capital
20
1
1
Revaluation reserve
2,702,781
2,871,460
Profit and loss reserves
4,322,875
4,150,196
Total equity
7,025,657
7,021,657
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 31 July 2025 and are signed on its behalf by:
H Klein
Director
Company registration number 06099534 (England and Wales)
KOSHER DELI (UK) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
1
2,871,460
3,875,810
6,747,271
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
312,898
312,898
Dividends
10
-
-
(38,512)
(38,512)
Balance at 31 December 2023
1
2,871,460
4,150,196
7,021,657
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
4,000
4,000
Other movements
-
(168,679)
168,679
-
Balance at 31 December 2024
1
2,702,781
4,322,875
7,025,657
KOSHER DELI (UK) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
657,434
1,209,997
Interest received
317
41,250
Interest paid
(246,742)
(265,813)
Income taxes paid
(90,884)
Net cash inflow from operating activities
320,125
985,434
Investing activities
Purchase of tangible fixed assets
(159,955)
(5,682)
Proceeds from disposal of tangible fixed assets
12,120
Net cash used in investing activities
(147,835)
(5,682)
Financing activities
Repayment of borrowings
(167,703)
(869,960)
Payment of finance leases obligations
(44,358)
(11,261)
Dividends paid
(38,512)
Net cash used in financing activities
(212,061)
(919,733)
Net (decrease)/increase in cash and cash equivalents
(39,771)
60,019
Cash and cash equivalents at beginning of year
124,868
64,849
Cash and cash equivalents at end of year
85,097
124,868
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Kosher Deli (UK) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 5 Technology Park, Colindeep Lane, Colindale, London, United Kingdom, NW9 6BX.
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, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
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.
1.3
Turnover
Turnover is measured 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. The turnover is recognised at the point of sale.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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
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:
Freehold land and buildings
Not depreciated
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
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.
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
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.
1.6
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.
1.7
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.
1.8
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 statement of financial position 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.
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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, 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.
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.9
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.
1.10
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 income statement 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 income statement, 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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 statement of financial position 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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
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.
Property Valuations
The fair value of freehold property is reassessed by the directors on an annual basis and formally valued as required as the directors do not believe there will be a material change in value in that period. The formal valuations are provided by independent valuers who are members of RICS. The independent valuer has the relevant professional expertise and experience in the location of the property being valued as well as the industry.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales
10,639,473
9,676,684
Overseas sales
1,858,843
1,823,697
Management fees
646,238
1,040,066
13,144,554
12,540,447
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,285,711
10,716,750
Europe
1,858,843
1,823,697
13,144,554
12,540,447
2024
2023
£
£
Other revenue
Interest income
317
41,250
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
34,330
Fees payable to the company's auditor for the audit of the company's financial statements
29,056
22,500
Depreciation of owned tangible fixed assets
202,617
225,114
Profit on disposal of tangible fixed assets
(2,253)
-
Operating lease charges
63,125
56,500
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
68
68
Administrative staff
6
6
Directors
2
2
Total
76
76
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,490,529
3,141,106
Social security costs
221,690
198,256
Pension costs
40,317
41,870
3,752,536
3,381,232
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
62,176
26,936
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
317
169
Other interest income
41,081
Total income
317
41,250
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
317
169
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
202,348
237,148
Other interest on financial liabilities
41,644
27,066
243,992
264,214
Other finance costs:
Interest on finance leases and hire purchase contracts
2,229
2,528
Other interest
521
246,742
266,742
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
11,966
90,884
Deferred tax
Origination and reversal of timing differences
168,679
16,790
Total tax charge
180,645
107,674
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
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
184,645
420,572
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
46,161
98,919
Tax effect of expenses that are not deductible in determining taxable profit
2,150
Group relief
(10,365)
Permanent capital allowances in excess of depreciation
(36,345)
2,331
Deferred tax movement
168,679
16,789
Taxation charge for the year
180,645
107,674
10
Dividends
2024
2023
£
£
Final paid
38,512
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2024
10,546,000
2,803,310
517,912
182,362
14,049,584
Additions
144,298
9,657
6,000
159,955
Disposals
(4,631)
(5,617)
(30,595)
(40,843)
At 31 December 2024
10,546,000
2,942,977
521,952
157,767
14,168,696
Depreciation and impairment
At 1 January 2024
2,249,912
481,100
53,827
2,784,839
Depreciation charged in the year
158,763
10,220
33,634
202,617
Eliminated in respect of disposals
(2,979)
(4,086)
(23,911)
(30,976)
At 31 December 2024
2,405,696
487,234
63,550
2,956,480
Carrying amount
At 31 December 2024
10,546,000
537,281
34,718
94,217
11,212,216
At 31 December 2023
10,546,000
553,398
36,812
128,535
11,264,745
Land and buildings with a carrying amount of £10,546,000 were revalued at 31 December 2024 by the directors on an open market basis.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2024
2023
£
£
Cost
7,002,357
7,002,357
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
214,196
378,004
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
393,244
681,329
Amounts owed by group undertakings
800,499
361,566
Other debtors
2,106,954
1,184,294
Prepayments and accrued income
84,691
162,484
3,385,388
2,389,673
Included in other debtors are amounts of £2,030,983 (2023; £194,849) due from related parties in which directors have a material interest. The amounts are interest free and repayable on demand.
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
166,489
182,416
Obligations under finance leases
17
37,038
42,575
Trade creditors
921,858
1,008,974
Amounts owed to group undertakings
1,299,634
171,493
Corporation tax
11,966
90,884
Other taxation and social security
51,584
56,074
Other creditors
161,176
291,942
Accruals and deferred income
25,000
72,862
2,674,745
1,917,220
Included in other creditors are amounts of £69,254 (2023: Nil) due to related parties in which directors have a material interest. The amounts are interest free and repayable on demand.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
3,810,562
3,978,368
Obligations under finance leases
17
42,103
80,924
Other borrowings
16
466,030
450,000
4,318,695
4,509,292
Included in other borrowings is a loan of £450,000 (2023 - £450,000) from Finsbury Trust Company Ltd as trustee for The Four Plus Settlement, with its registered office at 50 Town Range, Gibraltar. The loan is repayable in full in 2032.
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
3,977,051
4,160,784
Other loans
466,030
450,000
4,443,081
4,610,784
Payable within one year
166,489
182,416
Payable after one year
4,276,592
4,428,368
The bank loans are secured by fixed and floating charges, created on 24 May 2017, 6 June 2017 and on 28 November 2017, over all the assets of the company. Additionally, the company has entered into a Composite Accounting Agreement whereby each participating company has provided a guarantee to the Bank.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
37,038
42,575
In two to five years
42,103
80,924
79,141
123,499
18
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
36,938
36,938
Revaluations
840,862
672,183
877,800
709,121
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Liability at 1 January 2024
709,121
Charge to profit or loss
168,679
Liability at 31 December 2024
877,800
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.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,317
41,870
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
1
1
1
1
Called-up share capital represents the nominal value of shares that have been issued.
21
Reserves
The company's reserves are as follows:
Profit and loss reserves
Retained earnings includes all current and prior period retained profits less dividends paid. All balances within retained earnings are distributable reserves.
Revaluation reserve
The revaluation reserve represents the accumulative fair value movement on the freehold property net of deferred tax provisions.
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
22
Financial commitments, guarantees and contingent liabilities
As at the balance sheet date, the company, which is a defendant, has a pending employment tribunal case. At the date of signing the accounts, the company has no obligation and the outcome of the case is uncertain, and any potential liability cannot be reliably measured. For these reasons, no provision has been provided in the accounts for any potential costs.
The company had provided a guarantee on three bank loans held by the company. These bank loans amount to £3,962,884 (2023: £4,104,417) as at 31 December 2024. The guarantee is secured by unlimited debenture on the company, fellow subsidiary and related companies listed below.
|
Kosher Deli (Borehamwood) Limited |
Kosher Deli (Hendon) Limited |
|
Frohweins (Factory) Limited |
|
|
|
|
|
|
The guarantee is also secured over the freehold land and buildings of the company, fellow subsidiary and related companies listed below.
23
Operating lease commitments
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:
2024
2023
£
£
Within one year
54,000
54,000
Between two and five years
216,000
216,000
In over five years
147,945
201,945
417,945
471,945
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
24
Related party transactions
During the year under review, the total donation made to the UK registered charity where the directors are the trustees amounts to £15,500 (2023: £123,285).
As at the year end, the company owed £63,609 (2023: £273,492) to a director. The amount is interest free and repayable on demand.
Other than the directors, there are no key management personnel.
25
Ultimate controlling party
The ultimate parent company is Richtone Developments Ltd, a company incorporated in The British Virgin Islands.
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
4,000
312,898
Adjustments for:
Taxation charged
180,645
107,674
Finance costs
246,742
265,813
Investment income
(317)
(41,250)
Gain on disposal of tangible fixed assets
(2,253)
-
Depreciation and impairment of tangible fixed assets
202,617
205,667
Movements in working capital:
Decrease/(increase) in stocks
163,808
(126,071)
Increase in debtors
(995,715)
(136,618)
Increase in creditors
857,907
621,884
Cash generated from operations
657,434
1,209,997
27
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
124,868
(39,771)
85,097
Borrowings excluding overdrafts
(4,610,784)
167,703
(4,443,081)
Obligations under finance leases
(123,499)
44,358
(79,141)
(4,609,415)
172,290
(4,437,125)
28
Prior period adjustment
KOSHER DELI (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
28
Prior period adjustment
(Continued)
- 27 -
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2023
£
Total adjustments
-
Profit as previously reported
312,898
Profit as adjusted
312,898
Notes to reconciliation
The prior year adjustment relates to an omission of the capitalisation of tangible fixed assets bought under finance lease in the prior year’s amounting to the cost of £124,172 and associated accumulated depreciation of £12,935, resulting in a net book value of £111,237. It also includes the omission of the same assets under lease liability amounting to £104,726. This give rise to the net impact on the profit and loss account of £6,512 which was compensated by the lease payments expensed through profit and loss accounts in the prior year, resulting in net impact of Nil. This has now been corrected resulting in an increase in tangible fixed assets with a corresponding increase of lease liability.
There is no tax implication on the company in relation to the above adjustment.
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