REGISTERED NUMBER: 01426126 (England and Wales)

FOLD HILL FOODS 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

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

A J Grant

P G Wynn

B Mankertz

N P Sanderson

W J Grant

REGISTERED OFFICE:

Fold Hill

Old Leake

Boston

Lincolnshire

PE22 9PJ

REGISTERED NUMBER:

01426126 (England and Wales)

AUDITORS:

Dexter & Sharpe Audit Services Ltd

(Statutory Auditor)

Rollestone House

Bridge Street

Horncastle

Lincolnshire

LN9 5HZ

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

The principal activity of the company in the year under review was the manufacture of pet food and the marketing thereof to the retail trade.

REVIEW OF BUSINESS

During 2024 the business continued to see strong growth of 12%, building on the growth strategy put in place in 2023. This improvement has been as a result of improving the customer and product mix with the business focusing on products and sectors where the company has an advantage.

The company continues to develop its product and customer base with the objective of generating additional turnover and sustainable profitability.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a challenging economic climate in which the price expectations of our customers have to be balanced against the volatility of the key raw material prices. In 2024 the business announced the decision to streamline its operations from two sites to one, which will come into effect at the end of 2025. The move will allow for greater production efficiencies and a modern manufacturing facility in the longer term to keep up with customer demands.

The management of the company's business and the execution of the company's strategies are subject to a number of risks:

- The volatility of raw materials and energy prices;

- The continued increases in the national minimum wage rate.

- The requirement to constantly upgrade equipment and invest in new technologies as new products are developed;

- The reliance on a few key customers to generate the current level of turnover.

- The effects of climate change.

These risks are being addressed by :

- Strategic longer term positions on key raw materials and energy.

- Working closely with our customers to ensure that we understand their needs and continue to offer competitive products and prices.

- Opening of new accounts and a diversified customer base to reduce the reliance on just a few key customers.

- Continued investment in plant, equipment and software processes to ensure the business is as efficient as possible.

- The business is fully engaged in reducing our CO2 emissions and are currently undertaking measurements of our scopes 1,2 & 3 emissions. We plan to halve our CO2 emissions by 2030. We currently source around a quarter of our electricity from a solar array owned by our parent business.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company uses various financial instruments including cash , hire purchase agreements and items such as trade debtors and trade creditors that arise directly from its operations, the main purpose of which is to ensure liquidity for the company's activities. Certain overseas suppliers are paid in foreign currency. Forward currency contract derivatives may be taken out from time to time to hedge against the cash flow risk, following an assessment of the cash flows. These financial instruments expose the company to a number of financial risks,as set out below along with the means in which the company manages its exposures in these areas.

Interest rate risk

The company has no bank overdrafts or bank borrowings.

Liquidity risks

The company manages its financial risk by ensuring it has enough liquidity available to meet its operating commitments through operating cash inflows and hire purchase facilities.

Credit risk

The company's main financial assets are cash and trade debtors. The main credit risk is linked to trade debtors, albeit, this is mitigated as the customers tend to be "blue chip". The company's aim is to minimise the risk of doubtful debts through the use of credit agencies, trade references and general experience of the industry. A proactive approach to debt collection is adopted with accounts processed regularly for obtaining payments, with collection history, and credit limits being reviewed on an ongoing basis.

KEY PERFORMANCE INDICATORS

We consider our key performance indicators to be measured by both turnover and operating profit. Both turnover and operating profit have increased as discussed in the Business Review above.

ON BEHALF OF THE BOARD:

A J Grant - Director

20 June 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

RESEARCH AND DEVELOPMENT

The company continues to research new recipes as part of its development into the dried pet food sector. A research laboratory and research team have been established specifically for this purpose.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

The beneficial interests of the directors holding office at 31 December 2024 in the shares of the company, according to the register of directors' interests, were as follows:

31.12.24

1.1.24

"B" ordinary shares of £1 each

A J Grant

1

1

P G Wynn

-

-

B Mankertz

-

-

N P Sanderson

-

-

W J Grant

-

-

These directors did not hold any beneficial interests in the "A" ordinary shares of £1 each.

These directors did not hold any non-beneficial interests in any of the shares of the company.

DISCLOSURE IN THE STRATEGIC REPORT

The Financial Risk Management Objectives and Policies, Principal Risks and Uncertainties and The Review of the Business and Future Development are covered in the Strategic Report.

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, Dexter & Sharpe Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A J Grant - Director

20 June 2025

Opinion

We have audited the financial statements of Fold Hill Foods Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 pages four and 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:

- We have enquired of those charged with governance around actual and potential litigation and claims.

- We have reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- We have enquired of staff engaged in the completion of VAT, tax and compliance work to identify any instances of non compliance with laws and regulations.

- We have audited the risk of management override of controls, including reviewing journal entries and large or unusual transactions and evaluating the business rationale of any significant transactions outside the course of business.

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.

Mrs Nicola Michelle Lenton F.C.C.A. (Senior Statutory Auditor)

for and on behalf of Dexter & Sharpe Audit Services Ltd

(Statutory Auditor)

Rollestone House

Bridge Street

Horncastle

Lincolnshire

LN9 5HZ

20 June 2025

TURNOVER

34,203,803

30,480,885

Cost of sales

(27,403,649

)

(25,826,024

)

GROSS PROFIT

6,800,154

4,654,861

Distribution costs

(2,028,111

)

(1,928,236

)

Administrative expenses

(2,329,746

)

(1,935,575

)

2,442,297

791,050

Other operating income

48,453

-

OPERATING PROFIT

3

2,490,750

791,050

Interest receivable and similar income

18,018

100

PROFIT BEFORE TAXATION

2,508,768

791,150

Tax on profit

4

-

46,318

PROFIT FOR THE FINANCIAL YEAR

2,508,768

837,468

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,508,768

837,468

FIXED ASSETS

Intangible assets

5

7,087

8,787

Tangible assets

6

4,031,714

4,060,737

Investments

7

605,052

605,052

4,643,853

4,674,576

CURRENT ASSETS

Stocks

8

3,664,366

4,389,881

Debtors

9

10,353,797

7,102,293

Cash at bank and in hand

1,356,145

1,054,929

15,374,308

12,547,103

CREDITORS

Amounts falling due within one year

10

5,478,250

5,139,179

NET CURRENT ASSETS

9,896,058

7,407,924

TOTAL ASSETS LESS CURRENT LIABILITIES

14,539,911

12,082,500

ACCRUALS AND DEFERRED INCOME

12

230,054

281,411

NET ASSETS

14,309,857

11,801,089

CAPITAL AND RESERVES

Called up share capital

13

10

10

Retained earnings

14

14,309,847

11,801,079

SHAREHOLDERS' FUNDS

14,309,857

11,801,089

The financial statements were approved by the Board of Directors and authorised for issue on 20 June 2025 and were signed on its behalf by:

A J Grant - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

10

10,963,611

10,963,621

Changes in equity

Total comprehensive income

-

837,468

837,468

Balance at 31 December 2023

10

11,801,079

11,801,089

Changes in equity

Total comprehensive income

-

2,508,768

2,508,768

Balance at 31 December 2024

10

14,309,847

14,309,857

1.	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 financial statements have been prepared on a going concern basis in accordance with applicable accounting policies.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Fold Hill Foods Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, J W Grant Co, Fold Hill, Old Leake, Boston. Lincolnshire PE22 9PJ.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the judgement of the directors a key estimate relates to stock provisioning, where it is possible that the outcome may differ to the estimates made.

The company manufactures and packs dog biscuits for sale. Certain of the raw materials used and products manufactured have a shelf life. Packaging stocks have to be managed to suit current product ranges.These risks are managed to reduce obsolete stock to a minimum and provision is made for slow and obsolete stocks.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Analysis of turnover by market is not disclosed as the directors consider that such disclosure would be seriously prejudicial to the business.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2003, is being amortised evenly over its estimated useful life of twenty years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Knowhow is being amortised evenly over its estimated useful life of nil years.

Intangible fixed assets and amortisation

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over 20 years.

Know-how represents the purchase of established methods of production. It is amortised to profit and loss over 4 years.

Tangible fixed assets

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

Buildings

-

2% on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

The directors have reviewed the depreciation estimate for land and buildings and feel that 2% is a more reasonable rate of depreciation considering the age and condition of the building.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Costs include all direct costs and an appropriate proportion of fixed and variable overheads.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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 received to fund the purchase of fixed tangible assets are included within provisions as deferred assets, and are credited to the profit and loss account over the expected lives of the related assets.

Operating leases

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged to profit and loss account as incurred.

2.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

4,534,127

4,256,969

Social security costs

445,029

385,774

Other pension costs

210,662

177,033

5,189,818

4,819,776

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

2024

2023

Directors

2

2

Managers

13

10

Administration

26

26

Operatives

100

93

141

131

2024

2023

£

£

Directors' remuneration

114,234

32,880

Directors' pension contributions to money purchase schemes

28,924

4,918

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

During the year to 31 December 2024, expenses and professional fees totalling £49,211 were paid to directors (2023: £45,928.) As at 31 December 2024, £1,123 was owed to directors (2023: £1,123).

3.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Depreciation - owned assets

650,796

634,222

Loss on disposal of fixed assets

1,619

19,816

Goodwill amortisation

1,700

1,701

Auditors' remuneration

12,800

12,150

Auditors' remuneration for non audit work

7,571

12,424

Foreign exchange differences

66

(2,383

)

4.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2024

2023

£

£

Current tax:

Under / (Overprovision) in

previous year

-

(46,318

)

Tax on profit

-

(46,318

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

2,508,768

791,150

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 19%)

627,192

150,319

Effects of:

Income not taxable for tax purposes

405

3,765

Capital allowances in excess of depreciation

-

(40,432

)

Depreciation in excess of capital allowances

16,387

-

Adjustments to tax charge in respect of previous periods

-

(46,318

)

Losses brought forward

(643,984

)

(113,652

)

Total tax credit

-

(46,318

)

5.	INTANGIBLE FIXED ASSETS

Goodwill

Knowhow

Totals

£

£

£

COST

At 1 January 2024

and 31 December 2024

148,563

173,686

322,249

AMORTISATION

At 1 January 2024

139,776

173,686

313,462

Amortisation for year

1,700

-

1,700

At 31 December 2024

141,476

173,686

315,162

NET BOOK VALUE

At 31 December 2024

7,087

-

7,087

At 31 December 2023

8,787

-

8,787

6.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Buildings

machinery

fittings

£

£

£

COST

At 1 January 2024

4,242,470

17,030,468

122,563

Additions

249,920

353,477

-

Disposals

-

(79,099

)

-

At 31 December 2024

4,492,390

17,304,846

122,563

DEPRECIATION

At 1 January 2024

2,973,976

14,286,521

122,563

Charge for year

29,955

599,272

-

Eliminated on disposal

-

(77,480

)

-

At 31 December 2024

3,003,931

14,808,313

122,563

NET BOOK VALUE

At 31 December 2024

1,488,459

2,496,533

-

At 31 December 2023

1,268,494

2,743,947

-

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2024

12,970

144,680

21,553,151

Additions

19,995

-

623,392

Disposals

-

-

(79,099

)

At 31 December 2024

32,965

144,680

22,097,444

DEPRECIATION

At 1 January 2024

11,300

98,054

17,492,414

Charge for year

781

20,788

650,796

Eliminated on disposal

-

-

(77,480

)

At 31 December 2024

12,081

118,842

18,065,730

NET BOOK VALUE

At 31 December 2024

20,884

25,838

4,031,714

At 31 December 2023

1,670

46,626

4,060,737