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

The results of Pickstock Telford Limited (the Company) for the year ended 31 December 2024 are set out in the Company’s financial statements.

Despite the challenges faced by the wider industry - including continued high inflation and the cost-of-living crisis impacting wage costs and sales prices - the Company increased turnover to £143.7m (2023: £134.8m), reflecting strong continued demand from our customers. As part of a planned growth strategy, we invested in a training and upskilling programme, which temporarily impacted production efficiency. This investment, combined with inflationary pressure, resulted in a decrease in both gross margin and operating profits as presented in the statement of comprehensive income.

The Company remains financially robust, with net assets of £51.9m (2023: £51.8m), ensuring we can continue to pay our farming partners promptly and invest in future growth.

Our customer base includes some of the UK’s and the world’s leading foodservice and retail partners, who place their trust in us to deliver consistent quality and traceability. As part of our long-term growth strategy and continued commitment to animal welfare, we plan to expand operations into Scotland and Dorset. These regions will not only enhance our access to livestock but also reduce transport times - further supporting welfare standards and supply chain resilience.

The Company also continued to invest in its Telford site throughout 2024, with a strong focus on health, safety, and employee wellbeing. This investment enabled uninterrupted production during the year.

The Directors plan to continually mitigate and minimise the risks inherent within the abattoir industry. However, there are many substantial risks outside of our control which could affect our business.

The principal risks are:

Economic

The abattoir industry is sensitive to changes such as the price of animals and customer demand. Any deterioration in economic conditions could decrease demand which could have a material effect on our business, revenues or profits. Continuing to work closely with regular communication with Suppliers and Customers was essential through the demand changes and the movement of the marketplace.

Laws and regulations

Our business is subject to planning, environmental and health and safety laws. Our obligations to comply with legislation can result in the business incurring additional costs. The rigorous routine of control and review of all the site was continued throughout the year.

Financial instruments

The Company's principal financial instruments comprise cash at bank and short term deposits. The main purpose of these financial instruments is to fund the Company's operations. The Company has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.

It is, and has been throughout the period under review, the Company's policy that no trading in financial instruments shall be undertaken. The main risks arising from the company's financial instruments are credit risk and foreign currency risk.

Credit risk

The Company trades with only recognised, creditworthy third parties. It is Company policy that all customers who wish to trade on credit terms are subject to vetting procedures. Balances are monitored on an ongoing basis with the result that the Company's exposure to bad debts is not significant.

Foreign currency risk

The Company can be exposed in its trading operations to the risk of changes in foreign currency exchange rates. The main foreign currency in which the group operates is the Euro. The Company monitors exchange rates on an ongoing basis to obtain favourable rates and reduce exposure to risk.

Turnover and profit before taxation are the principal performance indicators which the Directors use to monitor the effect of changes in the business. Turnover increased by 7% but profit before taxation decreased during the year ended 31 December 2024 to £0.4m loss (2023: £1.2m profit) driven by reduced margin due to market forces and increasing costs across all areas.

Production volumes and efficiencies are measured daily to meet Customer delivery schedules and capacity planning. For a year on year comparison the purchase volumes increased by 3.5% (2023: decrease of 1.9%) and production volumes increased by 1.8% (2023: decrease 0.2%).

At Pickstock, we are dedicated to fostering a positive, inclusive, and supportive working environment. We combine the warmth and personal touch of a family-run business with the global expertise and resources of our joint partners, OSI. Our HR department maintains an open-door approach, ensuring employees have direct and informal access to support, guidance, and resolution of concerns. Open communication is a key pillar of our culture, and we actively engage with employees through representatives and regular staff meetings to ensure their voices are heard on matters that affect their interests and working conditions. We also encourage continuous improvement through regular surveys, suggestion boxes, and open forums designed to capture employee input. Ongoing efforts are made to ensure all employees feel respected, valued, and included, regardless of background or role. Above all, employee safety, wellbeing, and professional development remain central to everything we do.

The Company is in regular communication with both Suppliers and Customers to understand changing requirements and developments, so the relationships are maintained and strengthened. Customer service levels are measured as part of our continuous improvement programme.

The majority of our workforce is drawn from the local area, supporting community employment and helping to reduce commuting-related environmental impact. Our Anaerobic Digestion Plant continues to operate at full capacity, efficiently converting operational waste into renewable energy. The plant generates electricity, heat, and digestate fertilizer from the Company’s waste streams.

This facility delivers several environmental benefits, including a significant reduction in CO₂ emissions from off-site treatment and transport. It also provides on-site power generation. The recovery of heat supports hot water and cleaning systems, reducing gas consumption, while the digestate is used as an effective fertilizer.

Science Based Targets Initiative has validated and classified our company’s scope 1 and 2 target ambition is in line with a 1.5 degrees centigrade trajectory.

The Company drives to maintain a reputation of high standards of business conduct by working with Customers with regular audits in addition to the various industry audits. These audits have returned to being on site.

Members of the Company

In addition to the formal board meetings the Directors and Shareholders discuss their industry knowledge through regular communication on pricing and production as well as investment decisions.

On behalf of the board

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

The principal activity of the company in the year under review was that of an abattoir operator.

The results for the year are set out on page 13.

No ordinary dividends were paid (2023: £3,000,000). The directors do not recommend payment of a final dividend.

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

Brexit

Leaving the European Union has forced additional costs and resource for exporting goods and the availability of labour still continues to impact the business.

The company recognises its obligations towards all of its employees to ensure that people with disabilities are afforded equal opportunities to enter employment and progress. Training, continuous improvement and promotion opportunities are available to all, regardless of disability. When an employee becomes incapable of carrying out their normal duties because of a disability, the company will arrange for their capabilities to be assessed with a view to identify suitable alternative work for that individual.

The company’s policy is to consult and discuss with employees, through employee representatives and at meetings, matters likely to affect employees’ interests.

Since the balance sheet date, as part of a long-term growth strategy, the Company has invested circa £10m, funded by cash reserves, in expanding operations into Scotland.

Going concern

The Directors, after reviewing the Company’s budgets, investment plans and financing arrangements, consider that the Company has at the date of this report sufficient financing available for the estimated requirements for the medium-term future. The Company continues to be profitable and holds sufficient reserves.

UK Greenhouse gas emissions and energy use data for the year ended 31 December 2024.

The following figures show the consumption and associated emissions for the reporting year for our operations, with figures from the previous reporting period included for comparison.

Scope 1 consumption and emissions relate to direct combustion of natural gas and fuels utilised for transportation operations, such as company vehicle fleets, and top-ups of refrigerants.

Scope 2 consumption and emissions relate to indirect emissions relating to the consumption of purchased electricity in day to day business operations.

The total consumption (kWh) figures for reportable energy supplies are as follows:

Scope 1 and 2 consumption and CO2e emissions data has been developed and calculated using the GHG Protocol A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development, 2004); Greenhouse Gas Protocol - Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019).

Government Emissions Factor Database 2024 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the reporting period 01/01/2024 to 31/12/2024.

Estimations were undertaken to cover missing billing periods for properties directly invoiced to the Company. These were calculated on a kWh/day pro-rata basis at the meter level.

These estimations were applied to one gas supply and equated to 0.26% of reported consumption.

Market-based electricity emissions reflect the actual emissions by the supplier from whom Pickstock Telford purchases electricity. For the period of 01/01/2024 – 31/12/2024, Pickstock Telford were supplied electricity by Drax who provided a REGO-backed certificate hence, there are no associated emissions.

Pickstock Telford create biomethane through its anaerobic digestion plant. The biogas is converted to electricity using a Combined Heat and Power (CHP) engine. For the period of 01/01/2024 – 31/12/2024, Pickstock Telford self-generated 3,859,458 kWh of electricity, the associated emissions with combusting the biomethane are captured under total Scope 1 emissions.

FY23 emissions figures have been restated to reflect more accurate reporting and improved methodology. The restatement can be seen in the refrigerants and electricity emissions figures. To remove the double counting, zero Scope 2 emissions have been associated with the self-generated electricity via anaerobic digestion. The associated emissions are instead captured under Scope 1 and includes the emissions resulting from the combustion of the biogas used to generate the electricity, this methodology is consistent with FY24. The refrigerant emissions have been updated to include emissions associated with the R448A refrigerant. The restatements have no impact on reported FY23 consumption figures.

Intensity measurement

An intensity metric of tCO2e per Tonnes of Input Material has been applied for our annual total emissions.

Tonnes of Input Material (ToIM) in 2024 (2023)     98,087.08 (96,709.35)

We are committed to year on year improvements in our operational energy efficiency. As such, a register of energy efficiency measures available to us has been compiled, with a view to implementing these measures in the next 5 years.

Measures on going and undertaken through 2024:

Water Recirculation Pump Replacement

In the year, we replaced five water recirculation pumps across the site. The replacements are more energy-efficient and ensure water and electricity wastage is minimised.

Bore Hole Water Pump Reactivation

In the year, we reactivated a bore hole water pump on site, returning it to full operational status. This measure has reduced reliance on the mains water supplier, leading to cost savings.

AD Generated Heat

In the year, we reduced the number of thermal boilers from three to one. Previously, water across the site was heated by thermal boilers, whereas now, water is now largely heated by anaerobic digestion (AD) generated heat. Reducing the thermal boiler demand has led to reduced gas consumption.

Measures prioritised for implementation in 2025:

Hydraulic Cropper Packs Replacement

In 2025, we plan to replaced the energy-intensive hydraulic cropper packs with a centralised system. This initiative would lead to energy savings and help drive consumption and resultant emissions down.

Tripe Room Water Reduction

We plan to install an automated system in the Tripe room. Currently, the process cycle time is manually controlled in the room, automating the process will lead to reduced water usage.

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• 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.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

We have audited the financial statements of Pickstock Telford Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 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 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' report 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.

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 directors' report.

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.

As explained more fully in the directors' responsibilities statement, 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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the abattoir sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, antibribery, employment, food hygiene and animal welfare regulations and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, inspecting legal correspondence and reviewing certification and audit reports from customers, Food Standards Agency and British Retail Consortium; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement,

including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed

procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims;

• reviewing any correspondence with HMRC;

• reviewing legal and professional fees incurred during the period to identify any potential indications of non-compliance with laws and regulations; and

• reviewing the audit findings reported by customers and relevant regulators, including the Food Standards Agency and British Retail Consortium.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of

non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Pickstock Telford Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hortonwood 45, Hortonwood, Telford, Shropshire, England, TF1 7FA.

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 amounts 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.

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

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 despatch 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.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land is not depreciated.

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 the Statement of Comprehensive Income.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

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).

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of livestock and packaging is based on purchase price. The cost of carcasses and boxed meat is measured using the retail method, whereby cost is estimated at selling price less a margin. The formula for cost measurement uses a first in, first out basis.

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.

Cash and cash equivalents are basic financial assets and include cash at bank and in hand, short term highly liquid investments and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 statement of financial position 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, 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.

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.

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.

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, including creditors, 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 payments 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. Amounts 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.

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

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 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.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

The costs of short-term employee benefits are recognised as a liability and an expense.

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

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors consider that there are no critical judgements, key estimates or assumptions used in preparing the financial statements.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

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

Bank overdrafts are secured by a fixed and floating charge of all present and future assets of the company in favour of HSBC Bank PLC.

Bank overdrafts are secured by a fixed and floating charge of all present and future assets of the company in favour of HSBC Bank PLC.

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

Accelerated capital allowances relate to the timing differences on capital allowances and is not expected to reverse due to the continuing investment in capital expenditure by the company.

Tax losses relate to unutilised tax losses carried forward and are expected to reverse in 2025.

Retirement benefit obligations relate to deferred tax on amounts owed to pension schemes and are expected to reverse in 2025.

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.

Contributions totaling £22,407 (2023 - £18,548) were payable to the fund at the balance sheet date.

Ordinary A and Ordinary B shares rank pari passu in all respects.

The reserves records all current and prior period retained profits and losses after dividends.

Amounts contracted for but not provided in the financial statements:

Since the balance sheet date, as part of a long-term growth strategy, the Company has invested circa £10m, funded by cash reserves, in expanding operations into Scotland.

The remuneration of key management personnel is as follows.

The company is 50% owned by OSI Europe Foodworks GmbH. During the year, the company sold goods to OSI group companies amounting to £79,820,879 (2023 - £85,737,665). The OSI group of companies also charged the company for management services and other expenses totalling £994,345 (2023 - £867,821). The net amount owed by OSI group companies at the year end was £5,286,159 (2023 - 7,533,325). No amounts are subject to guarantee or security.

G V Pickstock is a shareholder and director of the company. During the year, the company purchased goods from G V Pickstock amounting to £1,388,542 (2023 - £1,333,577). The company also purchased goods from Pickstock Homes Limited, a company controlled by GV Pickstock amounting to £3,544 (2023 - £247,425). G V Pickstock also sold goods amounting to £13,821 (2023 - £13,721). The net amount owed to G V Pickstock at the year end was £1,247 (2023 - £61,163).

The company paid remuneration to family members of key management personnel amounting to £47,892 (2023 - £37,305).