REGISTERED NUMBER: SC530336 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 September 2024

for

Mills Milk (Scotland) Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

13

DIRECTORS:

A Mills

Ms A Mills

REGISTERED OFFICE:

c/o McLay McAlister & McGibbon LLP

145 St Vincent Street

Glasgow

G2 5JF

REGISTERED NUMBER:

SC530336 (Scotland)

AUDITORS:

McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

The directors present their strategic report for the year ended 30 September 2024.

REVIEW OF BUSINESS

Turnover for the year increased by 24.1% to £20,260,595 compared to £16,325,294 last year. This is in part due to the purchase of Milk Rounds during the year.

Profit before tax increased from £145,808 to £258,104, an increase of 76.9%. Furthermore, the net asset position continues to improve with net assets of £428,891 at 30 September 2024 compared to £345,433 at 30 September 2023, an increase of 24.2%.

The directors are satisfied with the results for the year and are confident that the company will to continue to grow in future years.

PRINCIPAL RISKS AND UNCERTAINTIES

The following risks represent they key risks and uncertainties affecting the company. They are not intended to be an exhaustive analysis of all the risks facing the business.

Health and safety risk: This risk is managed through the companies policy and procedures and the quality of the management team. Policies and procedures are regularly reviewed to ensure that they are up to date and in line with regulations.

Credit risk: The company assesses the credit risk of customers to ensure that credit is not extended where there is a likelihood of default and use debt factoring where appropriate.

Liquidity risk: Liquidity risk reflects the risk that the company will have insufficient reserves to meet its financial liabilities as they fall due. The directors objective is to ensure adequate reserves are in place through regularly managing and reviewing cash resources and maintaining levels of working capital.

ON BEHALF OF THE BOARD:

A Mills - Director

24 September 2025

The directors present their report with the financial statements of the company for the year ended 30 September 2024.

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2024 will be £100,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

A Mills

Ms A Mills

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

A Mills - Director

24 September 2025

Opinion

We have audited the financial statements of Mills Milk (Scotland) Ltd (the 'company') for the year ended 30 September 2024 which comprise the Statement of 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 30 September 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 three, 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and

non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks and irregularities;

- any matters we identified having reviewed the company's internal controls established to mitigate risks of fraud or

noncompliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate. These included health and safety, GDPR and employment laws. Auditing standards limit the required audit procedures to identify non - compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any.These limited procedures did not identify actual or suspected non-compliance.

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.

Paul Martin (Senior Statutory Auditor)

for and on behalf of McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

24 September 2025

TURNOVER

20,260,595

16,325,294

Cost of sales

(13,190,924

)

(11,419,422

)

GROSS PROFIT

7,069,671

4,905,872

Distribution costs

(10,920

)

(8,830

)

Administrative expenses

(6,776,956

)

(4,735,127

)

OPERATING PROFIT

4

281,795

161,915

Interest payable and similar expenses

5

(23,691

)

(16,047

)

PROFIT BEFORE TAXATION

258,104

145,868

Tax on profit

6

(74,646

)

(52,848

)

PROFIT FOR THE FINANCIAL YEAR

183,458

93,020

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

183,458

93,020

FIXED ASSETS

Intangible assets

8

235,117

173,773

Tangible assets

9

517,403

385,979

752,520

559,752

CURRENT ASSETS

Stocks

10

182,734

70,000

Debtors

11

1,895,160

1,866,869

Cash at bank and in hand

686,829

160,032

2,764,723

2,096,901

CREDITORS

Amounts falling due within one year

12

(2,577,456

)

(2,042,789

)

NET CURRENT ASSETS

187,267

54,112

TOTAL ASSETS LESS CURRENT LIABILITIES

939,787

613,864

CREDITORS

Amounts falling due after more than one year

13

(421,748

)

(195,043

)

PROVISIONS FOR LIABILITIES

17

(89,148

)

(73,388

)

NET ASSETS

428,891

345,433

CAPITAL AND RESERVES

Called up share capital

18

1

1

Retained earnings

19

428,890

345,432

SHAREHOLDERS' FUNDS

428,891

345,433

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

A Mills - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

1

322,412

322,413

Changes in equity

Dividends

-

(70,000

)

(70,000

)

Total comprehensive income

-

93,020

93,020

Balance at 30 September 2023

1

345,432

345,433

Changes in equity

Dividends

-

(100,000

)

(100,000

)

Total comprehensive income

-

183,458

183,458

Balance at 30 September 2024

1

428,890

428,891

Cash flows from operating activities

Cash generated from operations

1

738,383

527,317

Interest paid

(573

)

(823

)

Interest element of hire purchase payments paid

(23,118

)

(15,224

)

Tax paid

(3,741

)

(23,016

)

Net cash from operating activities

710,951

488,254

Cash flows from investing activities

Purchase of intangible fixed assets

(90,000

)

(165,248

)

Purchase of tangible fixed assets

(182,824

)

(100,703

)

Sale of tangible fixed assets

25,442

-

Net cash from investing activities

(247,382

)

(265,951

)

Cash flows from financing activities

New loans in year

268,750

-

Loan repayments in year

(10,000

)

(10,000

)

Capital repayments in year

(107,491

)

(53,021

)

Amount introduced by directors

100,000

70,000

Amount withdrawn by directors

(88,031

)

(41,365

)

Equity dividends paid

(100,000

)

(70,000

)

Net cash from financing activities

63,228

(104,386

)

Increase in cash and cash equivalents

526,797

117,917

Cash and cash equivalents at beginning of year

2

160,032

42,115

Cash and cash equivalents at end of year

2

686,829

160,032

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

30.9.24

30.9.23

£

£

Profit before taxation

258,104

145,868

Depreciation charges

201,124

148,316

Profit on disposal of fixed assets

(4,140

)

-

Finance costs

23,691

16,047

478,779

310,231

Increase in stocks

(112,734

)

(20,000

)

Increase in trade and other debtors

(40,260

)

(403,234

)

Increase in trade and other creditors

412,598

640,320

Cash generated from operations

738,383

527,317

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 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

686,829

160,032

Year ended 30 September 2023

30.9.23

1.10.22

£

£

Cash and cash equivalents

160,032

42,115

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.10.23

Cash flow

changes

At 30.9.24

£

£

£

£

Net cash

Cash at bank

and in hand

160,032

526,797

686,829

160,032

526,797

686,829

Debt

Finance leases

(250,268

)

107,491

-

(285,147

)

Debts falling due

within 1 year

(351,645

)

(55,520

)

-

(407,165

)

Debts falling due

after 1 year

(17,500

)

(213,959

)

-

(231,459

)

(619,413

)

(161,988

)

-

(923,771

)

Total

(459,381

)

364,809

-

(236,942

)

1.	STATUTORY INFORMATION

Mills Milk (Scotland) Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses over various years, is being amortised over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

The company's policy is to review the remaining useful lives and residual value of all tangible fixed assets on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value.

Stocks

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

Financial instruments

Debtors

Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired.

Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash in hand and bank overdrafts. In the balance sheet bank overdrafts are shown in creditors amounts falling due within one year.

Creditors

Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due.

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.

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.

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.

3.	EMPLOYEES AND DIRECTORS

30.9.24

30.9.23

£

£

Wages and salaries

3,722,808

2,215,916

Other pension costs

74,835

59,928

3,797,643

2,275,844

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

30.9.24

30.9.23

120

74

30.9.24

30.9.23

£

£

Directors' remuneration

59,342

60,367

4.	OPERATING PROFIT

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

30.9.24

30.9.23

£

£

Other operating leases

107,108

77,027

Depreciation - owned assets

84,781

58,611

Depreciation - assets on hire purchase contracts

87,687

70,049

Profit on disposal of fixed assets

(4,140

)

-

Goodwill amortisation

28,656

19,656

Auditors' remuneration

15,000

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.9.24

30.9.23

£

£

Bank loan interest

573

823

Hire purchase

23,118

15,224

23,691

16,047

6.

TAXATION

Analysis of the tax charge

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

30.9.24

30.9.23

£

£

Current tax:

UK corporation tax

58,886

15,526

Deferred tax

15,760

37,322

Tax on profit

74,646

52,848

7.

DIVIDENDS

30.9.24

30.9.23

£

£

Ordinary share of £1

Final

100,000

70,000

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 October 2023

196,560

Additions

90,000

At 30 September 2024

286,560

AMORTISATION

At 1 October 2023

22,787

Amortisation for year

28,656

At 30 September 2024

51,443

NET BOOK VALUE

At 30 September 2024

235,117

At 30 September 2023

173,773

9.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 October 2023

137,089

567,274

704,363

Additions

87,935

237,259

325,194

Disposals

-

(51,990

)

(51,990

)

At 30 September 2024

225,024

752,543

977,567

DEPRECIATION

At 1 October 2023

53,009

265,375

318,384

Charge for year

43,004

129,464

172,468

Eliminated on disposal

-

(30,688

)

(30,688

)

At 30 September 2024

96,013

364,151

460,164

NET BOOK VALUE

At 30 September 2024

129,011

388,392

517,403

At 30 September 2023

84,080

301,899

385,979

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 October 2023

338,785

Additions

160,426

Disposals

(46,990

)

At 30 September 2024

452,221

DEPRECIATION

At 1 October 2023

128,350

Charge for year

87,687

Eliminated on disposal

(27,166

)

At 30 September 2024

188,871

NET BOOK VALUE

At 30 September 2024

263,350

At 30 September 2023

210,435

10.

STOCKS

30.9.24

30.9.23

£

£

Stocks

182,734

70,000

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.24

30.9.23

£

£

Trade debtors

1,627,578

1,616,797

Other debtors

185,002

119,709

Directors' current accounts

18,089

30,058

VAT

64,491

100,305

1,895,160

1,866,869

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.24

30.9.23

£

£

Bank loans and overdrafts (see note 14)

10,000

10,000

Other loans (see note 14)

397,165

341,645

Hire purchase contracts (see note 15)

94,858

72,725

Trade creditors

1,544,249

1,473,766

Tax

117,540

62,395

Social security and other taxes

143,185

69,049

Pension creditor

12,030

7,209

Accrued expenses

258,429

6,000

2,577,456

2,042,789