Company registration number 11406980 (England and Wales)
Van Hessen UK Operations Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2024
Van Hessen UK Operations Limited
Company Information
Directors
Mr H J A Van Boxtel
Mrs N Van Rompaey de Vaal
Mr R P Burghoorn
Secretary
Mrs M Remmer
Company number
11406980
Registered office
The Parade
Sunderland
Tyne and Wear
SR2 8NT
Auditor
Charlton & Co
Saville Chambers
4 Saville Street
South Shields
Tyne & Wear
NE33 2PR
Van Hessen UK Operations Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
Van Hessen UK Operations Limited
Strategic Report
for the Year Ended 31 December 2024
- 1 -

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

Review of the business

The principal activity of the company is the sale of products of animal origin.

2024 has been a challenging year for the company. The lingering effects of Brexit still impact upon staff recruitment, forcing the company to use more expensive sub-contract labour, eroding the company’s margin. The company provides products to differing markets and one of those markets has seen significant price reductions during the year, leading to a contraction of turnover of 71.8% in that market. The consequential effect of this is that total sales for the year have fallen by 16.8% from £20.5m to £17.1m but, on a like for like basis, sales in the other markets have actually risen by 9.1%.

The balance sheet of the company has been negatively impacted by the loss for the year, but the company is still making positive cash flows from operations.

Principal risks and uncertainties

We ensure we manage our risks by creating, implementing, and adhering to our internal policies and procedures. Due to the nature of our business our main risks are:

- Health & Safety and Veterinary issues relating to the food chain. With the cooperation of our partners, we actively train and monitor our staff in health and safety and good hygiene practices.

- Localized or national outbreak of disease in the animal which could impact our business operation and could cause disruption and potential closure of our business. To counter this risk, we source product from geographically diverse locations.

Key performance indicators

As well as Gross Profit % (which has de creased from 10.78% to (1.42)%), the company considers EBITDA %, EBIT % and Result after Tax % to be the key indicators for the business. These are analysed monthly and action is taken where necessary to correct any adverse movements in them.

At the year end, the values for these indicators were:

EBITDA % (11.20)% (202 3 – 4.22%)

EBIT % (13.78)% (202 3 – 0.01%)

PAT % (12.9 5)% (202 3 – (0.6 5)%)

On behalf of the board

Mrs N Van Rompaey de Vaal
Director
21 February 2025
Van Hessen UK Operations Limited
Directors' Report
for the Year Ended 31 December 2024
- 2 -

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

Principal activities

The principal activity of the company is that of the purchasing, cleaning, processing and sale of animal by-products.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr H J A Van Boxtel
Mrs N Van Rompaey de Vaal
Mr R P Burghoorn
Financial instruments
Treasury operations and financial instruments

The company's operations expose it to a variety of financial risks including the effect of changes in foreign currency exchange rates, credit risk and liquidity risk.

The company does not have material exposure in any of these areas as identified above and, consequently, does not use derivative instruments to manage these exposures.

The company's principal financial instruments comprise sterling and Euro bank deposits, together with trade debtors and trade creditors that arise directly from its operations.

Liquidity risk

The company manages its cash and borrowing to ensure that it has sufficient liquid resources to meet the operating needs of the business. It participates in the group's pooled treasury function which it can access as required to obtain additional funding to meet any short or long term liquidity problems.

Foreign currency risk

The company is exposed in its trading operations to the risk of changes in foreign currency exchange rates. As the company mainly sells its goods to group companies in Euro's and purchases goods mainly in the UK the overall risk is not significant.

The main foreign currency in which the company operates is the Euro.

Credit risk

The company's principal financial assets are bank balances, cash and trade debtors, which represents the company's maximum exposure to credit risk in relation to financial assets.

The company's credit risk is primarily attributable to its trade debtors. Credit risk is managed by monitoring the aggregate amount and duration of exposures to any one customer depending on their credit rating. The amounts presented in the balance sheet are net of allowances for doubtful debts, estimated by the company's management based on prior experience and their assessment of the current economic environment.

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Van Hessen UK Operations Limited
Directors' Report (continued)
for the Year Ended 31 December 2024
- 3 -
Future developments

There are no plans in place to significantly alter the company's operations in the foreseeable future.

Auditor

The auditor, Charlton & Co, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mrs N Van Rompaey de Vaal
Director
21 February 2025
Van Hessen UK Operations Limited
Independent Auditor's Report
to the Member of Van Hessen UK Operations Limited
- 4 -
Opinion

We have audited the financial statements of Van Hessen UK Operations Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport 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.

Van Hessen UK Operations Limited
Independent Auditor's Report (continued)
to the Member of Van Hessen UK Operations Limited
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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.

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

We have obtained an understanding of the legal and regulatory frameworks that are applicable to the company and consider the most significant are those that relate to the reporting framework (FRS102, the Companies Act 2006 and UK tax legislation), as well as regulatory standards set by the Food Standards Agency. We have also considered the opportunities and incentives that exist within the company for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to revenue recognition, with a particular risk in relation to completeness, and the potential for management to manipulate financial performance by the processing of manual adjustments or through significant or one-off unusual transactions.

Audit procedures performed by the engagement team included:

- Enquiries of management and those charged with governance about their own consideration of known or suspected incidences of non-compliance with laws and regulations and fraud;

- Reviewing the appropriateness of the company's accounting policies;

- Review of third party certification and related correspondence, and publicly available records;

- Detailed transactional testing and analytical procedures with regard to the recognition of revenue;

- Testing the appropriateness of journal entries and other manual adjustments;

- Reviewing large or unusual transactions.

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 arising as a result of error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentation, or through collusion.

Van Hessen UK Operations Limited
Independent Auditor's Report (continued)
to the Member of Van Hessen UK Operations Limited
- 6 -

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.

Use of our 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.

Mark Charlton FCA
Senior Statutory Auditor
For and on behalf of Charlton & Co
21 February 2025
Chartered Accountants
Statutory Auditor
Saville Chambers
4 Saville Street
South Shields
Tyne & Wear
NE33 2PR
Van Hessen UK Operations Limited
Statement of Comprehensive Income
for the Year Ended 31 December 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
17,099,322
20,545,783
Cost of sales
(17,341,854)
(18,330,345)
Gross (loss)/profit
(242,532)
2,215,438
Distribution costs
(715,530)
(752,067)
Administrative expenses
(1,398,241)
(1,443,015)
Operating (loss)/profit
3
(2,356,303)
20,356
Interest payable and similar expenses
5
(152,331)
(135,276)
Loss before taxation
(2,508,634)
(114,920)
Tax on loss
6
294,624
(20,326)
Loss for the financial year
(2,214,010)
(135,246)

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

Van Hessen UK Operations Limited
Balance Sheet
as at 31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
2,290,546
2,576,262
Current assets
Stocks
9
343,428
509,453
Debtors
10
1,755,116
2,590,280
Cash at bank and in hand
397,710
231,239
2,496,254
3,330,972
Creditors: amounts falling due within one year
11
(4,948,506)
(3,679,261)
Net current liabilities
(2,452,252)
(348,289)
Total assets less current liabilities
(161,706)
2,227,973
Provisions for liabilities
Deferred tax liability
12
-
0
175,669
-
(175,669)
Net (liabilities)/assets
(161,706)
2,052,304
Capital and reserves
Called up share capital
14
1
1
Profit and loss reserves
(161,707)
2,052,303
Total equity
(161,706)
2,052,304

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 21 February 2025 and are signed on its behalf by:
Mrs N Van Rompaey de Vaal
Director
Company registration number 11406980 (England and Wales)
Van Hessen UK Operations Limited
Statement of Changes in Equity
for the Year Ended 31 December 2024
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
2,187,549
2,187,550
Year ended 31 December 2023:
Loss and total comprehensive income
-
(135,246)
(135,246)
Balance at 31 December 2023
1
2,052,303
2,052,304
Year ended 31 December 2024:
Loss and total comprehensive income
-
(2,214,010)
(2,214,010)
Balance at 31 December 2024
1
(161,707)
(161,706)
Van Hessen UK Operations Limited
Statement of Cash Flows
for the Year Ended 31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
449,360
685,588
Interest paid
(152,331)
(135,276)
Income taxes refunded
24,571
-
0
Net cash inflow from operating activities
321,600
550,312
Investing activities
Purchase of tangible fixed assets
(168,006)
(588,942)
Proceeds from disposal of tangible fixed assets
12,877
105,119
Net cash used in investing activities
(155,129)
(483,823)
Net increase in cash and cash equivalents
166,471
66,489
Cash and cash equivalents at beginning of year
231,239
164,750
Cash and cash equivalents at end of year
397,710
231,239
Van Hessen UK Operations Limited
Notes to the Financial Statements
for the Year Ended 31 December 2024
- 11 -
1
Accounting policies
Company information

Van Hessen UK Operations Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Parade, Sunderland, Tyne and Wear, SR2 8NT.

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Where there is a contract in place for the sale of all the company's output from a specific location, then revenue is recognised when the quantity of the output is known rather than at the point of dispatch

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:

Plant and equipment
12.5% to 50% straight line depending upon asset type

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
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.

Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
1
Accounting policies
(continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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.

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
1
Accounting policies
(continued)
- 13 -
Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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 paymen ts 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. A m ounts 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.

Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
1
Accounting policies
(continued)
- 14 -
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 s ubsequently 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 th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
1
Accounting policies
(continued)
- 15 -
1.13
Leases

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 lease s asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Turnover
2024
2023
£
£
Turnover analysed by class of business
Agricultural by-products
17,099,322
20,545,783
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,429,523
1,977,382
Europe
15,669,799
18,568,401
17,099,322
20,545,783
3
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,750
10,500
Depreciation of owned tangible fixed assets
453,722
412,875
Impairment of owned tangible fixed assets
-
0
344,946
(Profit)/loss on disposal of tangible fixed assets
(12,877)
88,032
Operating lease charges
61,336
63,257
Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
- 16 -
4
Employees

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

2024
2023
Number
Number
Production staff
76
69
Management and administration
7
8
Total
83
77

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,690,976
5,415,176
Social security costs
405,398
352,750
Pension costs
97,005
77,666
7,193,379
5,845,592
5
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
152,331
135,276
6
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(294,624)
(28,730)
Changes in tax rates
-
0
49,056
Total deferred tax
(294,624)
20,326
Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
6
Taxation
(continued)
- 17 -

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(2,508,634)
(114,920)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
(627,159)
(27,006)
Unutilised tax losses carried forward
451,490
-
0
Effect of change in corporation tax rate
-
0
49,056
Group relief
(118,955)
-
0
Difference in tax rates
-
0
(1,724)
Taxation (credit)/charge for the year
(294,624)
20,326

The company has unused tax losses of approximately £2.49 million available to offset against future profits.

7
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
8
-
0
344,946
Recognised in:
Cost of sales
-
344,946
Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
- 18 -
8
Tangible fixed assets
Plant and equipment
£
Cost
At 1 January 2024
4,004,816
Additions
168,006
At 31 December 2024
4,172,822
Depreciation and impairment
At 1 January 2024
1,428,554
Depreciation charged in the year
453,722
At 31 December 2024
1,882,276
Carrying amount
At 31 December 2024
2,290,546
At 31 December 2023
2,576,262

More information on impairment movements in the year is given in note 7.

9
Stocks
2024
2023
£
£
Raw materials and consumables
343,428
509,453
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
468,940
639,298
Corporation tax recoverable
66,607
91,178
Amounts owed by group undertakings
991,544
1,756,018
Other debtors
74,992
89,640
Prepayments and accrued income
34,078
14,146
1,636,161
2,590,280
Deferred tax asset (note 12)
118,955
-
0
1,755,116
2,590,280
Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
- 19 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,241,843
836,371
Amounts owed to group undertakings
2,947,623
2,174,067
Taxation and social security
94,757
113,741
Other creditors
84,936
79,415
Accruals and deferred income
579,347
475,667
4,948,506
3,679,261
12
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
296,523
321,496
-
-
Tax losses
(289,354)
(135,966)
118,955
-
Other timing differences
(7,169)
(9,861)
-
-
-
175,669
118,955
-
2024
Movements in the year:
£
Liability at 1 January 2024
175,669
Credit to profit or loss
(294,624)
Asset at 31 December 2024
(118,955)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the surrender of tax losses to group companies for the current period.

13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
97,005
77,666

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.

Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
- 20 -
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1

The holders of the ordinary shares are entitled to full voting rights and participation in dividends and returns of capital.

15
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
24,293
27,540
Between two and five years
24,991
32,640
49,284
60,180
16
Ultimate controlling party

The company is a 100% subsidiary of Van Hessen Holding BV, a company incorporated in the Netherlands. The parent company which draws up the group accounts is Rethmann SE & Co. KG whose registered office is Norbert-Rethmann-Platz 1, 59379 Selm, Germany.

17
Cash generated from operations
2024
2023
£
£
Loss for the year after tax
(2,214,010)
(135,246)
Adjustments for:
Taxation (credited)/charged
(294,624)
20,326
Finance costs
152,331
135,276
(Gain)/loss on disposal of tangible fixed assets
(12,877)
88,032
Depreciation and impairment of tangible fixed assets
453,722
757,821
Movements in working capital:
Decrease in stocks
166,025
452,402
Decrease in debtors
929,548
38,587
Increase/(decrease) in creditors
1,269,245
(671,610)
Cash generated from operations
449,360
685,588
Van Hessen UK Operations Limited
Notes to the Financial Statements (continued)
for the Year Ended 31 December 2024
- 21 -
18
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
231,239
166,471
397,710
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