CRL FOODS LTD


Directors	LAMBERT, David Severs
	PHILLIPS, Gareth
	ROUTLEDGE, David Arthur


Registered Address	Unit 7 Christon Road
	Gosforth North Ind Est
	Newcastle Upon Tyne
	NE3 1XD


Registered Number	11017052 (England and Wales)

Notes to the Financial Statements
for the year ended 31 December 2024

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. 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 at the 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 in respect of the transaction can be measured reliably.

Turnover policy

Turnover is recognised at the fair value of the consideration received or receivable for goods and
services provided in the normal course of business, and is shown net of VAT and other sales related
taxes. The fair value of consideration takes into account trade discounts, settlement discounts and
volume rebates.

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 at the 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 in respect of the transaction can be measured reliably.

	Defined contribution pension plan
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Finance costs
	Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Intangible assets
	Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows: Patents - 5 years Licences - 5 years

Intangible assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life
cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:

Patents - 5 years
Licences - 5 years

	Tangible fixed assets and depreciation
	Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated
depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at
the fair value at the date of revaluation less any subsequent accumulated depreciation and
subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other
comprehensive income and accumulated in equity, except to the extent it reverses a revaluation
decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount
of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of
any previously recognised revaluation increase accumulated in equity in respect of that asset. Where
a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect
of that asset, the excess shall be recognised in profit or loss.

Depreciation is provided on all tangible fixed assets as follows:


		Straight line (years)
	Land and buildings	10
	Plant and machinery	10
	Fixtures and fittings	5
	Office Equipment	4

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

	Finance leases and hire purchase contracts
	Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). 

At each date of Statement of Financial Position, stocks are assessed for impairment.  If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell.  The impairment loss is recognised immediately in the Income Statement.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Government grants or assistance
	Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

Government grants or assistance

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. 

Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

2.	Average number of employees


		2024		2023
	Average number of employees during the year	33		27

3.	Intangible assets
	Intangible assets consist of licenses and patents.

	Other	Total
	£	£
Cost or valuation
At 01 January 24	14,825	14,825
At 31 December 24	14,825	14,825
Amortisation and impairment
At 01 January 24	6,935	6,935
Charge for year	2,965	2,965
At 31 December 24	9,900	9,900
Net book value
At 31 December 24	4,925	4,925
At 31 December 23	7,890	7,890

4.	Tangible fixed assets

	Land & buildings	Plant & machinery	Fixtures & fittings	Office Equipment	Total
	£	£	£	£	£
Cost or valuation
At 01 January 24	224,220	1,315,113	1,088	10,450	1,550,871
Additions	1,032	232,839	458	2,699	237,028
Disposals	(151)	(92,432)	-	-	(92,583)
Transfers	(13,901)	13,901	-	-	-
At 31 December 24	211,200	1,469,421	1,546	13,149	1,695,316
Depreciation and impairment
At 01 January 24	46,239	394,529	72	3,778	444,618
Charge for year	21,034	146,084	271	2,961	170,350
On disposals	(21)	(17,031)	-	-	(17,052)
Other adjustments	(1,932)	1,932	-	-	-
At 31 December 24	65,320	525,514	343	6,739	597,916
Net book value
At 31 December 24	145,880	943,907	1,203	6,410	1,097,400
At 31 December 23	177,981	920,584	1,016	6,672	1,106,253

5.	Revaluation of property, plant and equipment
	In 2019 plant and equipment was revalued from cost to fair value by the directors. In the opinion of the directors, the net book value of plant and machinery as a whole does not differ materially from the fair value of this asset class at the balance sheet date. If the plant and machinery had not been included at valuation they would have been included under the historical cost convention at a cost of £1,279,290 (2023: £1,124,982) and a net book value of £929,832 (2023: £872,012).

Revaluation of property, plant and equipment

In 2019 plant and equipment was revalued from cost to fair value by the directors.

In the opinion of the directors, the net book value of plant and machinery as a whole does not differ materially from the fair value of this asset class at the balance sheet date.

If the plant and machinery had not been included at valuation they would have been included under the historical cost convention at a cost of £1,279,290 (2023: £1,124,982) and a net book value of £929,832 (2023: £872,012).

6.	Stocks

	2024	2023
	£	£
Raw materials and consumables	456,272	376,298
Finished goods	60,224	27,349
Total	516,496	403,647

7.	Debtors: amounts due within one year

	2024	2023
	£	£
Trade debtors / trade receivables	249,583	157,553
Other debtors	148,466	157,767
Prepayments and accrued income	110,648	20,520
Total	508,697	335,840

8.	Creditors: amounts due within one year

	2024	2023
	£	£
Trade creditors / trade payables	314,258	543,474
Bank borrowings and overdrafts	10,397	10,140
Taxation and social security	361,206	82,572
Finance lease and HP contracts	28,088	28,088
Other creditors	122,147	65,936
Accrued liabilities and deferred income	589,912	636,471
Total	1,426,008	1,366,681


	Hire purchase creditors are secured on the assets to which they relate. Other creditors include other loans of £95,400 (2023: £50,924). The loans are unsecured.

9.	Creditors: amounts due after one year

	2024	2023
	£	£
Bank borrowings and overdrafts	4,409	14,806
Other creditors	848,781	2,339,221
Total	853,190	2,354,027


	Other creditors above includes two loans of £400,000 each, taken out as part of an investment round in December 2024. These will be repaid within 5 years, with the first instalments due in January 2026. Other creditors also includes a hire purchase creditor of £48,781. Details of security provided: Loans included in other creditors are secured by a fixed charge and a floating charge over all of the property and undertaking of the company. Hire purchase creditors are secured on the assets to which they relate.

Other creditors above includes two loans of £400,000 each, taken out as part of an investment round in December 2024. These will be repaid within 5 years, with the first instalments due in January 2026.

Other creditors also includes a hire purchase creditor of £48,781.

Details of security provided:

Loans included in other creditors are secured by a fixed charge and a floating charge over all of the property and undertaking of the company.

Hire purchase creditors are secured on the assets to which they relate.

10.	Share capital
	On 23 December 2024 the company issued 1,473,326 new £1 shares as part of an investment round. The shares were issued on conversion of the loans previously disclosed in other creditors in the accounts. The share issue comprised 1,465,056 A preference £1 shares at nominal value, 2 B preference £1 shares at a premium of £249,999 per share, 2 C preference £1 shares at a premium of £499,999 per share, and 8,266 ordinary £1 B shares at a premium of £11.10 per share. Called up share capital at 31 December 2024 consists of 31,221 ordinary shares and 1,465,060 preference shares. No shares were unpaid at the reporting date.

10.

Share capital

On 23 December 2024 the company issued 1,473,326 new £1 shares as part of an investment round. The shares were issued on conversion of the loans previously disclosed in other creditors in the accounts.

The share issue comprised 1,465,056 A preference £1 shares at nominal value, 2 B preference £1 shares at a premium of £249,999 per share, 2 C preference £1 shares at a premium of £499,999 per share, and 8,266 ordinary £1 B shares at a premium of £11.10 per share.

Called up share capital at 31 December 2024 consists of 31,221 ordinary shares and 1,465,060 preference shares.
		
No shares were unpaid at the reporting date.

11.	Related party transactions
	Short term loans were provided between CRL Foods Ltd and another company in which a director of CRL Foods Limited owns 100% of the share capital. Interest payments relating to these loans have been made amounting to £22,194 in the year. Other debtors per note 7 includes £25,256 (2023; £Nil) owed from this company to CRL Foods Ltd.

	Notes	2024		2023
		£	£	£	£
Fixed assets
Intangible assets	3		4,925		7,890
Tangible assets	4		1,097,400		1,106,253
			1,102,325		1,114,143
Current assets
Stocks	6	516,496		403,647
Debtors	7	508,697		335,840
Cash at bank and on hand		360,042		18,512
		1,385,235		757,999
Creditors amounts falling due within one year	8	(1,426,008)		(1,366,681)
Net current assets (liabilities)			(40,773)		(608,682)
Total assets less current liabilities			1,061,552		505,461
Creditors amounts falling due after one year	9		(853,190)		(2,354,027)
Net assets			208,362		(1,848,566)
Capital and reserves
Called up share capital			1,496,281		22,955
Share premium			1,768,747		177,017
Revaluation reserve			155,234		189,731
Profit and loss account			(3,211,900)		(2,238,269)
Shareholders' funds			208,362		(1,848,566)