ACCOUNTS - Final Accounts

OPERATING PROFIT

The operating profit is stated after charging:

Registered number: 09116500

KALE & DAMSON LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

KALE & DAMSON LIMITED

COMPANY INFORMATION

DIRECTORS	Kuljit S Dhariwal
	Kamaljit S Dhariwal


REGISTERED NUMBER	09116500


REGISTERED OFFICE	5 Westpoint
	Stirling Way
	Papworth Everard
	Cambridgeshire
	CB23 8GY


INDEPENDENT AUDITOR	PEM Audit Limited
	Registered Auditor
	Salisbury House
	Station Road
	Cambridge
	CB1 2LA


BANKERS	Barclays Bank PLC
	28 Chesterton Road
	Cambridge
	CB4 3AZ

KALE & DAMSON LIMITED

CONTENTS

	Page
Strategic Report	1
Directors' Report	2 - 3
Independent Auditor's Report	4 - 7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Statement of Cash Flows	11
Notes to the Financial Statements	12 - 22

KALE & DAMSON LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

INTRODUCTION

The directors present their strategic report and business review for the year ended 31 December 2024, which includes the principal risks and uncertainties of the business and key performance indicators.

BUSINESS REVIEW

The Company has recorded turnover for the year of £12.0m (2023 - £12.6m), achieving a gross profit of £4.2m (2023 - £4.1m) and a net profit before taxation of £0.05m (2023 - £0.26m).
The directors consider that the pre-tax margin represents a reasonable performance in what has continued to be a competitive market. The directors have close control over both the operating and administrative costs and are pleased to report these positive results.
The Company continues to monitor its balance sheet position to ensure it is able to fund its working capital requirements based on expected levels of turnover and customer and supplier credit terms. Despite the macroeconomic and climatic factors impacting the fresh fruit and vegetable market, the directors are pleased to report a healthy position in terms of cash holdings and net balance sheet reserves at the year end date and continue to monitor these factors closely to ensure the Company maintains adequate financial headroom.

PRINCIPAL RISKS AND UNCERTAINTIES

Risks to the business include its relationships with key suppliers and key customers. The Company continues to foster strong relationships with its suppliers and makes payments in line with agreed terms and constantly monitors customer service levels to ensure customer satisfaction. The directors routinely monitor all known risks and uncertainties and appropriate actions are taken to mitigate the risks of their potential outcomes.
Supply chain management continues to be closely monitored and, whilst to date operations have been largely unaffected, the directors will implement actions where necessary.
The overall aim of the Company’s financial risk management policy is to minimise potential adverse effects on financial performance and net assets.

FINANCIAL KEY PERFORMANCE INDICATORS

1) Turnover: £12.0m (2023 - £12.6m)
2) Gross margin: 35.1% (2023 - 32.2%)
3) Operating profit: £0.1m (2023 - £0.3m)

This report was approved by the board and signed on its behalf by:

Kuljit S Dhariwal

Director

Date: 28 September 2025

Page 1

KALE & DAMSON LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

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

PRINCIPAL ACTIVITY

The principal activity of the Company is that of the wholesales of fruit and vegetables.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £10,645 (2023 - £189,656).

Dividends of £NIL were paid during the year (2023 - £NIL). No final dividends have been recommended.

DIRECTORS

The directors who served during the year were:

Kuljit S Dhariwal

Kamaljit S Dhariwal (appointed 7 June 2024)

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to 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.

Page 2

KALE & DAMSON LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

FINANCIAL INSTRUMENTS

The Company has exposures to two main areas of risk - liquidity risk and interest rate risk. To a lesser extent the Company is exposed to credit risk. The most significant financial risks to which the Company is exposed are described below:
Liquidity risk
The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The Company's policy throughout the year has been to ensure continuity of funding. Short term flexibility is achieved by a bank facility.
Interest rate risk
The Company finances its operations through bank borrowings. The Company's exposure to interest rate fluctuations on its borrowings is managed by the use of a fixed rate facility.
Credit risk
The Company’s principal financial assets are cash and trade debtors, with the main risk arising from its trade debtors. Policies and procedures exist to ensure that customers have an appropriate credit history. Overall, the Company considers that it is not exposed to a significant amount of credit risk.

MATTERS COVERED IN THE STRATEGIC REPORT

Future developments relevant to the Company are covered in the Strategic Report.

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITOR

On 1 September 2025, Peters Elworthy & Moore transferred their audit registration, along with part of their business, to a newly incorporated entity, PEM Audit Limited. As a result, Peters Elworthy & Moore ceased to hold office as the Company's auditor, and PEM Audit Limited was appointed in their place.
Under section 487(2) of the Companies Act 2006, PEM Audit Limited will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf by:

Kuljit S Dhariwal

Director

Date: 28 September 2025

Page 3

KALE & DAMSON LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KALE & DAMSON LIMITED

OPINION

We have audited the financial statements of Kale & Damson Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 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 United Kingdom, including the Financial Reporting Council'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.

Page 4

KALE & DAMSON LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KALE & DAMSON LIMITED (CONTINUED)

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.

OPINION 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 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.

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 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.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.

Page 5

KALE & DAMSON LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KALE & DAMSON LIMITED (CONTINUED)

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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 industry;

∙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 Financial Reporting Standard 102 (United Kingdom Generally Accepted Accounting Practice), the Companies Act 2006 and taxation legislation;

∙in addition, we considered provisions of other laws and regulations which do not have a direct effect on the financial statements but compliance with which might be fundamental to the Company's ability to operate or to avoid material penalties; and

∙we obtained an understanding of the entity’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance.

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 set out in Note 3 were indicative of potential bias;

∙designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;

∙used Audit Data Analytics to review the client data for unusual trends and anomalies; and

∙performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revieing accounting estimates for bias.

Page 6

KALE & DAMSON LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KALE & DAMSON LIMITED (CONTINUED)

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
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; and

∙enquiring of management as to actual and potential litigation and claims.

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 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 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.

Edward Napper (Senior Statutory Auditor)

for and on behalf of

PEM Audit Limited

Registered Auditor

Salisbury House

Station Road

Cambridge

CB1 2LA

28 September 2025

Page 7

KALE & DAMSON LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	11,971,691	12,617,934
Cost of sales		(7,766,086)	(8,552,304)
GROSS PROFIT		4,205,605	4,065,630
Administrative expenses		(4,154,152)	(3,787,249)
OPERATING PROFIT	5	51,453	278,381
Interest receivable and similar income	9	4,400	252
Interest payable and similar expenses	10	(10,609)	(13,874)
PROFIT BEFORE TAX		45,244	264,759
Tax on profit	11	(34,599)	(75,103)
PROFIT FOR THE FINANCIAL YEAR		10,645	189,656

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023 - £NIL).

The notes on pages 12 to 22 form part of these financial statements.

Page 8

KALE & DAMSON LIMITED

REGISTERED NUMBER: 09116500

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

FIXED ASSETS
Tangible assets	12		71,172		65,666
			71,172		65,666
CURRENT ASSETS
Stocks	13	110,539		132,712
Debtors: amounts falling due within one year	14	963,845		1,072,475
Cash at bank and in hand	15	1,086,030		1,354,040
		2,160,414		2,559,227
Creditors: amounts falling due within one year	16	(1,627,442)		(1,970,225)
NET CURRENT ASSETS			532,972		589,002
TOTAL ASSETS LESS CURRENT LIABILITIES			604,144		654,668
Creditors: amounts falling due after more than one year	17		(50,000)		(110,000)
PROVISIONS FOR LIABILITIES
Deferred tax	19		(8,363)		(9,532)
Other provisions	20		(50,000)		(50,000)
NET ASSETS			495,781		485,136

CAPITAL AND RESERVES
Called up share capital	21	100	100
Profit and loss account	22	495,681	485,036
SHAREHOLDERS' FUNDS		495,781	485,136

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Kuljit S Dhariwal

Director

Date: 28 September 2025

The notes on pages 12 to 22 form part of these financial statements.

Page 9

KALE & DAMSON LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
AT 1 JANUARY 2023	100	295,380	295,480

Profit for the year	-	189,656	189,656

AT 1 JANUARY 2024	100	485,036	485,136

Profit for the year	-	10,645	10,645
AT 31 DECEMBER 2024	100	495,681	495,781

The notes on pages 12 to 22 form part of these financial statements.

Page 10

KALE & DAMSON LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial year	10,645	189,656
ADJUSTMENTS FOR:
Depreciation of tangible fixed assets	27,097	45,572
Interest payable and similar expenses	10,609	13,874
Interest receivable and similar income	(4,400)	(252)
Taxation charge	34,599	75,103
Decrease/(increase) in stocks	22,173	(8,638)
Decrease/(increase) in debtors	108,630	(49,421)
(Decrease)/increase in creditors	(288,518)	226,754
Increase in provisions	-	50,000
Corporation tax paid	(89,960)	(42,801)
NET CASH GENERATED FROM OPERATING ACTIVITIES	(169,125)	499,847

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible fixed assets	(32,603)	(42,242)
Interest received	4,327	252
NET CASH FROM INVESTING ACTIVITIES	(28,276)	(41,990)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of loans	(60,000)	(59,994)
Interest paid	(10,609)	(13,874)
NET CASH USED IN FINANCING ACTIVITIES	(70,609)	(73,868)
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	(268,010)	383,989
Cash and cash equivalents at beginning of year	1,354,040	970,051
CASH AND CASH EQUIVALENTS AT THE END OF YEAR	1,086,030	1,354,040

CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:
Cash at bank and in hand	1,086,030	1,354,040

Page 11

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	GENERAL INFORMATION

Kale & Damson Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is 5 Westpoint, Stirling Way, Papworth Everard, Cambridgeshire, CB23 8GY.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

GOING CONCERN

The Directors have adopted the going concern basis in preparing the financial statements. In assessing whether the going concern assumption is appropriate, the Directors have taken into account all relevant information about the current status of the business operations and its liquidity.
Based on their review the Directors have a reasonable expectation that the Company will continue to have sufficient funds to meet its liabilities as they fall due for at least 12 months from the date of approval of these financial statements. This expectation is arrived at following consideration of the future development, performance, cash flows and financial position along with the current and forecast liquidity. The Directors monitor the cash position of the Company regularly, taking account of the current trading, they consider that the assumptions made are appropriate and are satisfied

2.3

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 12

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.4

TURNOVER

Turnover comprises revene recognised by the Company in respect to the wholesale of fruit and vegetables during the period, exclusive of Value Added Tax, trade dicounts and volume rebates.

2.5

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

2.6

FINANCE COSTS

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

2.7

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.8

PENSIONS

The Company operates a defined contribution scheme for its employees. A defined contribution scheme is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.9

OPERATING LEASES

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.10

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Page 13

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.10

CURRENT AND DEFERRED TAXATION (CONTINUED)

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property	-	20% straight line
Plant and machinery	-	20% straight line
Motor vehicles	-	33% straight line
Fixtures and fittings	-	20% straight line
Computer equipment	-	20%/33% straight line

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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

STOCKS

Stocks comprise fruit and vegetables held for resale and are stated at the lower of cost and net relisable value after making due allowance for obsolete and slow-moving stocks.

2.13

DEBTORS

Short-term debtors are measured at transaction price, less any impairment.

2.14

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 14

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.15

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.16

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.

Increases in provisions are generally charged as an expense to profit or loss.

2.17

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

3.	JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Management do not consider there to be any significant or material judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses in the financial statements.

TURNOVER

The whole of the turnover is attributable to the wholesale of fruit and vegetables.

All turnover arose within the United Kingdom.

Depreciation of tangible fixed assets	27,097	45,572
Exchange differences	43	24
Other operating lease rentals	360,378	360,913

Page 15

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Fees payable to the Company's auditor for the audit of the Company's financial statements

10,000

9,075

Wages and salaries	2,222,481	1,833,279
Social security costs	228,305	175,648
Cost of defined contribution scheme	260,109	27,462
	2,710,895	2,036,389

The average monthly number of employees, including the directors, during the year was as follows:

	2024	2023
	No.	No.

Office / management	9	9
Warehouse	40	39
Sales / distribution	22	20

	71	68

8.	DIRECTORS' REMUNERATION
		2024	2023
		£	£

Directors' emoluments	161,399	101,513
Company contributions to defined contribution pension schemes	7,458	1,321
	168,857	102,834

During the year retirement benefits were accruing to 2 directors (2023 - 1) in respect of defined contribution pension schemes.

Page 16

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.	INTEREST RECEIVABLE AND SIMILAR INCOME
		2024	2023
		£	£

Bank and other interest receivable

4,400

252

10.	INTEREST PAYABLE AND SIMILAR EXPENSES
		2024	2023
		£	£

Bank loan interest payable

10,609

13,874

CORPORATION TAX
Current tax on profits for the year	24,008	78,229
Adjustments in respect of previous periods	11,760	-
TOTAL CURRENT TAX	35,768	78,229

DEFERRED TAX
Origination and reversal of timing differences	(1,169)	(3,126)
TOTAL DEFERRED TAX	(1,169)	(3,126)


		34,599	75,103

Page 17

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.TAXATION (CONTINUED)

Profit on ordinary activities before tax

45,244

264,759

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25.00% (2023 - 23.52%)	11,311	62,273
EFFECTS OF:
Expenses not deductible for tax purposes	13,707	13,015
Adjustments to tax charge in respect of prior periods	11,760	-
Marginal relief	(2,179)	-
Remeasurement of deferred tax for changes in tax rates	-	(185)
TOTAL TAX CHARGE FOR THE YEAR	34,599	75,103

FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges

Page 18

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	TANGIBLE FIXED ASSETS

	Short-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Computer equipment	Total
	£	£	£	£	£	£
COST
At 1 January 2024	176,134	24,037	84,548	16,574	56,203	357,496
Additions	-	21,662	-	-	10,941	32,603
At 31 December 2024	176,134	45,699	84,548	16,574	67,144	390,099
DEPRECIATION
At 1 January 2024	131,843	24,037	84,548	10,515	40,887	291,830
Charge for the year	14,161	4,964	-	2,711	5,261	27,097
At 31 December 2024	146,004	29,001	84,548	13,226	46,148	318,927
NET BOOK VALUE
At 31 December 2024	30,130	16,698	-	3,348	20,996	71,172
At 31 December 2023	44,291	-	-	6,059	15,316	65,666

13.	STOCKS
		2024	2023
		£	£

	Finished goods and goods for resale	110,539	132,712

14.

DEBTORS

					2024	2023
					£	£


Trade debtors	828,361	944,279
Other debtors	60,315	64,771
Prepayments and accrued income	75,169	63,425
	963,845	1,072,475

Page 19

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	CASH AND CASH EQUIVALENTS
		2024	2023
		£	£

	Cash at bank and in hand	1,086,030	1,354,040

16.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2024	2023
		£	£

Bank loans (see note 18)	60,042	60,042
Trade creditors	1,129,781	1,437,462
Corporation tax	23,935	78,200
Other taxation and social security	90,362	45,296
Other creditors	207,850	128,131
Accruals and deferred income	115,472	221,094
	1,627,442	1,970,225

17.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
		2024	2023
		£	£

	Bank loans (see note 18)	50,000	110,000

Bank loans falling due within one year	60,042	60,042
Bank loans falling due 1-2 years	50,000	60,000
Bank loans falling due 2-5 years	-	50,000
	110,042	170,042

Bank loans comprise a Corona Business Interruption Loan Scheme (CBILS) loans, which was drawn down in October 2020. Fees and interest incurred within the first 12 months were paid by the UK Government. After this 12 month period, interest has been charged at 2.99%.

Page 20

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

19.	DEFERRED TAXATION

	2024	2023
	£	£

At beginning of year	9,532	12,658
Charged to profit or loss	(1,169)	(3,126)
AT END OF YEAR	8,363	9,532

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Accelerated capital allowances	11,820	10,206
Short term timing differences	(3,457)	(674)
	8,363	9,532

20.	PROVISIONS

		Dilapidations
		£

	At 1 January 2024	50,000
	AT 31 DECEMBER 2024	50,000

21.	SHARE CAPITAL
		2024	2023
		£	£

ALLOTTED, CALLED UP AND FULLY PAID

100 (2023 - 100) Ordinary shares of £1.00 each	100	100

Page 21

KALE & DAMSON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22.

RESERVES

Profit and loss account

The profit and loss account includes all current and prior years retained profit and losses, less dividends paid.

23.	ANALYSIS OF NET DEBT

		At 1 January 2024	Cash flows	Other non-cash changes	At 31 December 2024
		£	£	£	£

Cash at bank and in hand	1,354,040	(268,010)	-	1,086,030
Bank loans due within 1 year	(60,042)	60,000	(60,000)	(60,042)
Bank loans due after 1 year	(110,000)	-	60,000	(50,000)
	1,183,998	(208,010)	-	975,988

24.	PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £260,109 (2023 - £27,462). Contributions totally £21,655 (2023 - £7,097) were payable to the fund at the balance sheet date and are included in other creditors.

	Not later than 1 year	-	92,040
		-	92,040

26.	CONTROLLING PARTY

The ultimate controlling party is Kuljit S Dhariwal, director, who holds 100% of the Company's share capital.

Page 22