REGISTERED NUMBER: 03699399 (England and Wales)

The Traditional Welsh Sausage Company

Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

Mr I G Edwards

Mr S James

SECRETARY:

Mrs C Edwards

REGISTERED OFFICE:

18 High Street

Conwy

North Wales

LL32 8DE

REGISTERED NUMBER:

03699399 (England and Wales)

AUDITORS:

Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

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

BUSINESS PURPOSE & OBJECTIVES

The Business manufacturers, markets and supplies an extensive range of award winning, branded, and own label, gluten free meat products, to Supermarkets, Online Retailers, as well as to the Catering, Foodservice and Business-to-Business market throughout Wales, the UK, Hong Kong, and Malaysia.

The business's ethos is to work collaboratively with both customers and suppliers, to provide consumers with a comprehensive, yet competitive range of meat products.

Long established relationships with our trading partners allow us to offer financial sustainability for suppliers, our workforce, and the local community. Maintaining the confidence to continually invest, helps us remain competitive and sustainable, helping to secure our local and national food supply chain.

REVIEW OF BUSINESS

As Directors, we are of the opinion that 2024 has been a positive year, with 9% overall sales growth of which majority has been volume-driven as consumer confidence increased seeing sales in the premium meat sector return to growth. As well as Branded retail sales growth, new business in the own label and manufacturing sector has also helped contribute to an increased EBITDA of £1,008,545 after adjustment of one-off recruitment fees. This is despite significant increases to labour costs for National Living Wage uplift of 9.8% from April 2024, continued raw material cost inflation, and other general business operating costs still increasing.

Despite the economic factors mentioned above, our focus has been on reducing costs resulting in administrative expenses falling year on year from 20% to 17% of turnover. Gross profit margin is up 0.5% versus prior year gained through a focus on efficiency and waste reduction. We will continue to maintain this more efficient cost base going forward and reduce further where possible.

Most investment for the year has been on new production machinery, specifically to improve product quality, waste reduction and productivity.

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces known business risks such as across the board inflation, and other uncertainties due to the nature of the challenging trading conditions in the wider meat sector. However, investments in efficiency & capability will enable the business to continue to remain competitive and achieve further growth. Adaptability will play a big part in achieving diversification into new markets as new added value meat sectors are explored.

As part of the continued long-term business plan, the Directors have been actively recruiting to further strengthen their Commercial and Marketing teams to support customer retention as well as continuing to actively target both existing and new product opportunities and developing new branded & private label customer opportunities within the UK and internationally.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company uses various financial instruments in addition to cash such as, net working capital in respect of trade debtors, trade creditors as well as stock management that arise directly from its operations.

The main risks arising from the company's financial instruments are liquidity risk and cash flow. As Directors, we review and agree policies for managing each of these risks on a continual basis.

Liquidity risk

The company looks to manage financial risk by ensuring that sufficient liquidity is available to meet foreseeable needs for the financial year ahead and beyond. The business also looks to secure borrowings, in a low-risk environment whilst seeking the most cost-efficient source of finance.

As Directors, we are currently appraising growth plans to ensure that maximum advantage is being taken of all investment opportunities in addition to ensuring that the company remains at the forefront of competition in the marketplace.

Interest Rate risk

The company finances its operations through a combination of retained profits; long term loan arrangements; asset finance as well as Government Grant Funding. The company's exposure to interest rate fluctuations is considered negligible given the fixed rate nature of loan arrangements.

KEY FINANCIAL PERFORMANCE INDICATORS

Results for the 2024 financial year and key financials are set out below:

Turnover has increased from £12,762,480 to £13,898,247, 9% sales growth for the year.

Gross Profit increased from £3,248,394 to £3,610,340 on a full year basis. Gross profit margin is 26% for the year, which is up 0.5% year on year.

Administrative expenses as a percentage of Turnover down from 20% to 17% year on year, with expenses down overall by £172,569 for the year.

Underlying EBITDA of £1,008,545, increased from £669,552 in 2023.

Reported net profit before tax increased from £223,393 to £577,719.

Shareholder funds have increased by £206,494 to £2,161,089.

As part of the business's strategic plans, strong reserves and cashflow will enable continued investment in terms of operational improvement, product quality, marketing, and sales growth.

SOCIAL & ENVIRONMENTAL CULTURE

We continue to invest in people, with graduate roles in food technology and sustainability in addition to professional development support for our team.

As well as internally, we also consider our responsibilities outside of the business. In 2021 we formed our Social & Environmental Responsibility Project team to improve the business for our employees, community, our customers & the environment. Early achievements include paperless Quality Assurance system and ISO accreditations are underway. Surplus stock continues to be donated to food charities such as Fareshare across the UK.

The company was included into a Welsh government innovative scheme, known as the 'Carbon reduction project', which was introduced to help businesses in the food and drink industry develop plans to reduce their carbon footprints. This has given the company a baseline for current activities and guidance to help the company put a strategy in place to reduce emissions into the future, one of which was our investment in Solar Panelling in 2023, with further initiatives being scoped.

We consistently achieve unannounced BRC AA accreditations, with 2024 achieving an AA+ rating. We operate traceability schemes through Red Tractor for Pork and Welsh PGI Beef. These schemes help us maintain a firm focus on product quality & customer demand.

The business prides itself on being able to offer long standing progressive career opportunities within the local area, promoting the Welsh language, with many colleagues having more than 10 years' service.

EMPLOYEES

As of 31 December 2024, 44% of the management team and 20% of the workforce were female, reflecting the companies' gender diversity.

The company does not operate any salary differential between Male or Female and fully promotes gender equality, with hourly rates reflecting the National minimum wage at basic entry and above for all other levels. The business is an employer of choice and is able to recruit from the locality with 73% of all staff employed within a 15-mile radius.

Through the provision of a dedicated Human Resources manager, communication channels are well established with worker committees, helping to achieve staff turnover rates far lower than industry standards, highlighting our workforces' personal commitment to the business.

The company is now SEDEX accredited, which shows our commitment to uphold and improve our labour standards, ethical sourcing, sustainable practices, and social responsibility.

OUTLOOK

2025 will be a challenging year, not just for the food & beverage industry, but to all production/retail/hospitality/SME sectors. National Living Wage increases (+6.7%), National Insurance uplifts (threshold and rate) and new packaging compliance costs (EPR) all being introduced in 2025, which will affect our profitability negatively. This doesn't include any other economic uncertainties from changes to government in the UK and USA, which could see further cost increases to SMEs in the not so distant future.

Despite these economic factors, the Director's believe with further business development, new product development, new revenue streams and increased focus on cost efficiencies, the business will continue to be profitable and competitive.

ON BEHALF OF THE BOARD:

Mr I G Edwards - Director

1 April 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the production and wholesale of meat products.

DIVIDENDS

An interim dividend of 2500 per share was paid on . The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 250,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr I G Edwards

Mr S James

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Salisbury & Company Business Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr I G Edwards - Director

1 April 2025

Opinion

We have audited the financial statements of The Traditional Welsh Sausage Company Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned in accordance with ISAs (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the group amd the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: The Companies Act 2006, FRS 102 'Financial Reporting Standards applicable in the UK and Republic of Ireland' and relevant UK legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team include:

- Discussions with management. including consideration of known or suspected instances of non-compliance with laws and regulations or fraud;

- Obtained an understanding of the internal controls that management have in place to prevent and detect raud;

- Challenged assmptions and judgements made by management in its significant accounting estimates;

- Reviewing the financial statement disclosures and assessing the appropriateness of accounting policies used;

- Identifying and testing journal entries, in particular manual or unusual entries;

- Obtaining third party confirmations of all the companies banking arrangements;

- Performing analytical procedures to identify any unusual or unexpected relationships;

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting.

The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's knowledge of the industry in which the client operates in and understanding of the practical experience with audit engagements of a similar nature and complexity through appropriate training and participation.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

Our audit procuedres are designed to detect material misstatements. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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 Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Jeremy Salisbury (Senior Statutory Auditor)

for and on behalf of Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

2 April 2025

TURNOVER

3

13,898,247

12,762,480

Cost of sales

(10,287,907

)

(9,514,086

)

GROSS PROFIT

3,610,340

3,248,394

Distribution costs

(750,449

)

(583,495

)

Administrative expenses

(2,369,455

)

(2,542,024

)

490,436

122,875

Other operating income

117,948

132,528

OPERATING PROFIT

6

608,384

255,403

Interest receivable and similar income

5,754

1,746

614,138

257,149

Interest payable and similar expenses

7

(36,419

)

(33,756

)

PROFIT BEFORE TAXATION

577,719

223,393

Tax on profit

8

(121,225

)

(91,558

)

PROFIT FOR THE FINANCIAL YEAR

456,494

131,835

PROFIT FOR THE YEAR

456,494

131,835

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

456,494

131,835

FIXED ASSETS

Tangible assets

10

2,803,183

3,051,972

CURRENT ASSETS

Stocks

11

498,238

443,386

Debtors

12

1,367,361

1,396,155

Cash at bank and in hand

819,580

535,562

2,685,179

2,375,103

CREDITORS

Amounts falling due within one year

13

1,495,793

1,470,879

NET CURRENT ASSETS

1,189,386

904,224

TOTAL ASSETS LESS CURRENT LIABILITIES

3,992,569

3,956,196

CREDITORS

Amounts falling due after more than one year

14

(626,220

)

(723,972

)

PROVISIONS FOR LIABILITIES

18

(670,802

)

(641,509

)

ACCRUALS AND DEFERRED INCOME

19

(534,458

)

(636,120

)

NET ASSETS

2,161,089

1,954,595

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

2,160,989

1,954,495

SHAREHOLDERS' FUNDS

2,161,089

1,954,595

The financial statements were approved by the Board of Directors and authorised for issue on 1 April 2025 and were signed on its behalf by:

Mr I G Edwards - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

2,072,660

2,072,760

Changes in equity

Dividends

-

(250,000

)

(250,000

)

Total comprehensive income

-

131,835

131,835

Balance at 31 December 2023

100

1,954,495

1,954,595

Changes in equity

Dividends

-

(250,000

)

(250,000

)

Total comprehensive income

-

456,494

456,494

Balance at 31 December 2024

100

2,160,989

2,161,089

Cash flows from operating activities

Cash generated from operations

1

881,092

681,219

Interest paid

(15,543

)

(18,116

)

Interest element of hire purchase payments paid

(20,876

)

(15,640

)

Tax paid

-

50,187

Net cash from operating activities

844,673

697,650

Cash flows from investing activities

Purchase of tangible fixed assets

(225,164

)

(220,533

)

Sale of tangible fixed assets

301

2,252

Interest received

5,754

1,746

Net cash from investing activities

(219,109

)

(216,535

)

Cash flows from financing activities

Loan repayments in year

(56,525

)

(54,797

)

Capital repayments in year

(31,901

)

(67,435

)

Amount withdrawn by directors

(3,120

)

(1,417

)

Equity dividends paid

(250,000

)

(250,000

)

Net cash from financing activities

(341,546

)

(373,649

)

Increase in cash and cash equivalents

284,018

107,466

Cash and cash equivalents at beginning of year

2

535,562

428,096

Cash and cash equivalents at end of year

2

819,580

535,562

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

577,719

223,393

Depreciation charges

472,914

469,677

Loss/(profit) on disposal of fixed assets

738

(1,600

)

Finance costs

36,419

33,756

Finance income

(5,754

)

(1,746

)

1,082,036

723,480

(Increase)/decrease in stocks

(54,852

)

13,748

Decrease/(increase) in trade and other debtors

31,914

(138,984

)

(Decrease)/increase in trade and other creditors

(178,006

)

82,975

Cash generated from operations

881,092

681,219

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

819,580

535,562

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

535,562

428,096

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

535,562

284,018

819,580

535,562

284,018

819,580

Debt

Finance leases

(392,206

)

31,901

(360,305

)

Debts falling due within 1 year

(56,330

)

(2,068

)

(58,398

)

Debts falling due after 1 year

(450,796

)

58,593

(392,203

)

(899,332

)

88,426

(810,906

)

Total

(363,770

)

372,444

8,674

1.	STATUTORY INFORMATION

The Traditional Welsh Sausage Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentational and functional currency of these financial statements is pound sterling; the financial statements are rounded to the nearest pound.

Significant judgements and estimates

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent, subjectivity involved in making such judgments, estimates and assumptions, the actual results and outcomes may differ.

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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future period.

Critical accounting judgements and key sources of estimation uncertainty

In the course of preparing the financial statements, no judgements have been made in the process of applying the Company's accounting policies, other than those involving estimations (which are dealt with separately below), that have had a significant effect on the amounts recognised in the financial statements.

Source of estimation uncertainty and judgements involving estimation:

The Company does not have any key assumptions concerning the future, or other key sources of estimation uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

The Company has transferred the significant risks and rewards of ownership to the buyer;

The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

The amount of revenue can be measured reliably;

It is probable that the Company will receive the consideration due under the transaction; and

The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 10% on cost

Fixed plant and machinery - 10% on cost

Plant and machinery - 15% to 20% reducing balance

Fixtures and fittings - 25% reducing balance

Motor vehicles - 25% reducing balance

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchases on a first in, first out basis. Finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired the carrying amount is reduced to its selling prices less costs to complete and sell. The impairment loss is recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants

Grants in respect of fixed assets are treated as deferred income and credited to the profit and loss account over the estimated life of the relevant assets.

Grants relating to revenue costs are credited to the profit and loss account so as to match them with the costs to which they are intended to contribute.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

13,861,099

12,747,069

Rest of the World

37,148

15,411

13,898,247

12,762,480

The turnover and profit before taxation are attributable to the principal activity of the company.

The turnover represents the provision of meat products.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,043,714

1,954,075

Social security costs

192,046

177,347

Other pension costs

34,014

35,068

2,269,774

2,166,490

The average number of employees during the year was as follows:

2024

2023

Directors

2

2

Admin

22

22

Production

34

31

58

55

Key Management

Total remuneration (salaries and consultancy fees) paid to key management (excluding directors) amounted to:

2024

2023

£

£

Emoluments

382,720

330,123

Pension contributions

13,931

10,091

Total

396,651

340,214

5.	DIRECTORS' EMOLUMENTS

2024

2023

£

£

Directors' remuneration

159,548

219,440