Company registration number: 02191902
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their strategic report for the year ended 31 March 2025.
The principal activity of the company during the year was that of supply of prepared poultry to quick service restaurants.
The profit for the financial year on ordinary activities before taxation was £1,984,912 (2024: £446,994).
Turnover increased by 16%, reflecting growth with existing customers and the addition of new accounts. Margins were maintained and the significant increase in profit was supported by higher volumes and operational efficiencies. At the year end, the company had net assets of £2.3m and cash of £2.8m.
The profit for the financial year on ordinary activities before taxation was £1,984,912 (2024: £446,994).
Turnover increased by 16%, reflecting growth with existing customers and the addition of new accounts. Margins were maintained and the significant increase in profit was supported by higher volumes and operational efficiencies. At the year end, the company had net assets of £2.3m and cash of £2.8m.
The company’s principal commercial risk is the pressure on maintaining margins caused by competition and inflationary cost increases.
The company's activities expose the company to several risks including liquidity risk, price risk and credit risk.
The company manages these risks as follows:
Liquidity risk
Cash flow is monitored daily, a positive position has been achieved throughout the year. Therefore, due to a further significant increase in cash reserves, demonstrating that there is minimal current liquidity risk within the company.
Price Risk
The Company seeks to limit its exposure to raw material and transport cost fluctuations by negotiating contracts over longer fixed periods.
Credit Risk
The company operates effective credit control procedures, and the level of trade receivables has been controlled in recent years. A strict limit is now imposed on any new credit accounts. The company is not exposed to a small number of clients.
The company's activities expose the company to several risks including liquidity risk, price risk and credit risk.
The company manages these risks as follows:
Liquidity risk
Cash flow is monitored daily, a positive position has been achieved throughout the year. Therefore, due to a further significant increase in cash reserves, demonstrating that there is minimal current liquidity risk within the company.
Price Risk
The Company seeks to limit its exposure to raw material and transport cost fluctuations by negotiating contracts over longer fixed periods.
Credit Risk
The company operates effective credit control procedures, and the level of trade receivables has been controlled in recent years. A strict limit is now imposed on any new credit accounts. The company is not exposed to a small number of clients.
The company will continue to develop systems and procedures to enhance customer relations, expand the product portfolio and improve logistics. These measures are expected to support further growth with both existing and new customers.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The company uses a series of key performance indicators to monitor the performance of the business. They include, but are not limited to, the following;
a) the weekly turnover achieved compared with the Company's forecasts
b) the gross profit margin
Turnover for the year was £42.7m, an increase of 16% on the prior year, driven by higher customer volumes and new business gains.
Actual gross margins of 22.8% were consistent with the prior year, with the business maintaining profitability despite inflationary pressures. The company is currently achieving turnover ahead of the 2025/26 budget while maintaining similar margins in the first half of the new financial year.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,495,352 (2024 - £343,764).
During the year, the directors paid a dividend of £338,000 (2024 - £nil).
The directors who served during the year were:
The company has chosen in accordance with Section 414c(11) of the Companies Act 2006 (Strategic Report and Director's
Report) Regulation 2013 to set out within the company's Strategic Report the Company's Report Information Required by
Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. This
included information that would have been included in the business review and details of principal risk and uncertainties.
Report) Regulation 2013 to set out within the company's Strategic Report the Company's Report Information Required by
Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. This
included information that would have been included in the business review and details of principal risk and uncertainties.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIBS DISTRIBUTION LIMITED
We have audited the financial statements of Dibs Distribution Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIBS DISTRIBUTION LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIBS DISTRIBUTION LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK tax legislation;
−UK employment legislation;
−UK food safety legislation;
−UK health and safety legislation; and
−General Data Protection Regulations.
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by making enquires to management and those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud:
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgements made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
−The application of inappropriate judgements or estimation to manipulate the Company's financial position;
−Posting of unusual journals and complex transactions;
−The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.
−The risk of fictitious employees being added to the payroll.
−The risk of expenses being falsified.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIBS DISTRIBUTION LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading
to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that
compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Surrey
KT22 8DY
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 26 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Dibs Distribution Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office, which is also its principal place of business, is given on the company information page of these financial statements.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Turnover is measured at the fair value of the consideration received or receivable for the supply of prepared poultry, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on delivery of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on delivery of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying, value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment if found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment if found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Key source of estimation uncertainty - Directors remuneration trust
The main area of judgement is in relation to payments made to a remuneration trust. Management have considered the current circumstances, expectation of future events and taken advice and do not believe that they require a provision in respect of the payments made to the remuneration trust which is currently under a HMRC enquiry.
Key source of estimation uncertainty - Stock valuation
Stock values can decrease due to going out of date. A provision is therefore determined based on each product's movement history with the directors exercising judgement over stock lines and making a provision where deemed appropriate.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Share premium account
Capital redemption reserve
Profit and loss account
Remuneration trust
During previous accounting periods the company have made contributions to a Remuneration Trust. The Trust is a discretionary trust controlled and administered by independent trustees. H.M. Revenue & Customs are of the opinion that the company is liable to various employment taxes on these payments. The company's professional advice on this matter is that these payments do not fall within the scope of the legislation suggested and as such no provision for taxes is made within these financial statements.
At the date of signing of the financial statements, it is uncertain as to whether any liability is payable by the company as the appeal is ongoing and the overall principals of such trusts are the subject of an ongoing Judicial review.
During previous accounting periods the company have made contributions to a Remuneration Trust. The Trust is a discretionary trust controlled and administered by independent trustees. H.M. Revenue & Customs are of the opinion that the company is liable to various employment taxes on these payments. The company's professional advice on this matter is that these payments do not fall within the scope of the legislation suggested and as such no provision for taxes is made within these financial statements.
At the date of signing of the financial statements, it is uncertain as to whether any liability is payable by the company as the appeal is ongoing and the overall principals of such trusts are the subject of an ongoing Judicial review.
Contributions totalling £17,137 (2024 - £16,349) were payable to the fund at the reporting date and are included in creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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