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Registered Number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of the company is the processing and sale of seafood products to the United Kingdom and its growing export markets.
The trading year saw further significant growth and builds on the strong trading that the company has experienced over the last few years to further consolidate its position as one of the leading value-added manufacturers in the UK, with a strong reputation for product quality and innovation. This strong growth saw the company’s turnover surpass £161m through the annualisation of a major contract win aligned with successful category development with existing customers, this led to 21% growth in turnover. Profit before Tax of £3.7m was behind the board’s expectations with the company impacted by higher operating costs whilst it dealt with the increase in volume. There was significant investment across both production facilities that will allow the company to return the operating margin back in line with expectations. Set against this, is the UK Government’s legislated increased labour costs and regulations, that will drive inflation throughout the UK supply chain, along with a further reduction in Atlantic cod quotas will lead to a challenging year.
Positive cash generation from the financial year allowed the board to further reduce the debt raised for the purchase of the additional manufacturing site in Uddingston by a further £2m, with a strong investment in new equipment in this financial year places the company in an enviable position within the industry. The biggest challenge to the company continues to be the highly volatile geopolitical environment and the board does not see this changing in the near term. The company’s strong financial position, well invested manufacturing facilities and excellent staff allows the company to navigate these challenging times with confidence. The company also benefits from a customer base that are best in class and strong supplier relationships to continue to deliver world leading innovative products and we would like to recognise the support of both our customers and suppliers as we collectively deal with the continued challenging operating environment. The board looks forward to the coming year with continued optimism, as we look forward to capitalising on the momentum we have gained with our existing customers and markets as well as expanding globally into new export markets with yet more exciting innovative products and new distribution channels.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Market and economic risk
The broader economic environment in which the company operates made for challenging and competitive trading conditions, and therefore growth within this environment is particularly pleasing. Whilst trading remains highly competitive, the company's new product development and efficient cost base ensure that it remains well positioned within the market. The company has an ethical and sustainable sourcing policy and recognises the importance of meeting the needs of the present generation without compromising the ability of future generations to meet their own needs and to help ensure the long term future of the fishing industry. To this end, it only sources fish from well managed wild fisheries and from responsibly farmed aquaculture. Foreign exchange risk The company manages its exposure to fluctuations in foreign currency through appropriate treasury management. Credit risk The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the Balance Sheet are net of allowances for doubtful debt. The market is such that sales are concentrated towards a small number of key customers. Credit risk is managed through maintaining good customer relationships and monitoring of credit levels and settlement periods. Liquidity risk Forecasts are produced to assist management in identifying liquidity requirements. Interest rate risk The company utilises short term and long banking facilities as required and is therefore exposed to variable interest rates based on the Bank of England base rate.
The directors consider the key financial performance indicators to be turnover, gross profit, gross margin and profit before tax. Cash generation is also considered a key measure.
Customer retention is considered to be the key non-financial performance indicator.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Section 172 (1) (a) to (f) requires the company directors to consider, both individually and collectively, that they have acted in the way that they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole in the decisions taken during the year.
When making these decisions the directors have given regard to: • The likely consequences of any decisions on the long-term strategy of the company; • The interests of the company's employees and potential future employees • The need to foster the company's business relationships with suppliers, customers and others • The impact of the company's operations on the community and environment • The desirability of the company maintaining a reputation for high standards of business conduct and • The need to act fairly between shareholders of the company The majority of stakeholder engagement is carried out by the board of directors who meet on a regular basis. The board of directors is composed of several individuals from the management team. The directors believe that the board dynamic ensures all stakeholders are considered and treated fairly, and all views are fully represented when making key decisions for the company in the short and long term. The board considers and discusses information from across the organisation to help it understand the impact of the company’s operations, and the interests and views of our key stakeholders. It also reviews strategy, financial and operational performance as well as information covering areas such as key risks, and legal and regulatory compliance. As a result of these activities, the Board has an overview of engagement with stakeholders, and other relevant factors, which enables the directors to comply with their legal duty under section 172 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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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.
The profit for the year, after taxation, amounted to £2,468,000 (2023 - £3,187,000).
No dividends were paid in the current or prior year.
The Directors who served during the year were:
The directors will continue to develop the company's core business and are not aware at the date of this
report, of any likely significant changes in the company's activities during the coming year.
The company's policy is to discuss with employees, through staff representative meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Thistle Seafoods Limited is responsible for the safe and sustainable operation of two manufacturing sites, ensuring that they are fit for purpose and pose no risk to staff or visitors. The key environmental risks identified include waste management, provision of utilities, legionella and vapour intrusion. The management recognise their responsibility to monitor and control the impact of these risks.
GHG reporting approach:
GHG emissions are reported in tonnes of carbon dioxide equivalent (TCO2e), and the submission covers the period 1 January 2024 – 31 December 2024, along with prior year comparatives. Reporting is based on the GHG Protocol Corporate Accounting and Reporting Standard. In line with the guidance on SECR, the company has included the energy and emissions for the buildings it owns and operates (those within its financial control boundary) and those where it leases facilities and is responsible for the energy consumption (but which are outside its financial control). Also included are all vehicular fuel emissions that the company is obliged to report, which includes all grey mileage undertaken for business purposes. The latest Defra emissions have been used, and the gross emissions total in the table, applies the ‘location based’ accounting methodology for grid emissions. The intensity measure gross scope 1 and 2 emissions in TCO2e per tonne of product manufactured have been applied.
Restatement of SECR Figures
SECR figures for the prior year have been restated due to improvements in data accuracy and methodology, adjustments arise from the following areas: Actualised Data Accruals: Missing consumption data was previously estimated on a pro-rata basis due to timing of reporting, these have now been actualised. Billing Variations: Monthly energy invoices may include actuals, estimates, or re-bills. Subsequent corrections have led to slight variations in reported consumption. Conversion Factors: Last year’s report used outdated conversion factors for transport fuels. These have now been corrected to reflect the appropriate year’s conversion factors. These changes ensure more accurate and reliable reporting in line with current SECR guidance.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Energy Efficiency action taken in financial year 2024
In 2024, energy efficiencies have been achieved by investing in new equipment that have resulted/will result in greater throughput per unit effort.
Refrigeration capacity has been increased. This will allow a higher throughput which will increase efficiency and improve our intensity metric of kWh/tonne food produced. Investment in new equipment as a replacement for older machinery as well as modifications to existing machinery have reduced downtime, increased throughput and from initial data, reduced food waste by approximately 80%. In addition to this, there have been increases in automation across the company during 2024. Whilst the related additional equipment has resulted in an increase in electricity consumption, the installations have increased throughput as this technology has streamlined the process.
Disclosure of information to auditor
∙so far as the Director is aware, there is no relevant audit information of which the company's auditor is unaware, and
∙the Directors 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
There have been no significant events affecting the company since the year end.
A resolution to appoint AAB Audit & Accountancy Limited as auditor of the company will be proposed at the next general meeting.
This report was approved by the board and signed on its behalf.
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
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;
∙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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THISTLE SEAFOODS LIMITED
We have audited the financial statements of Thistle Seafoods Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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).
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.
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THISTLE SEAFOODS LIMITED (CONTINUED)
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THISTLE SEAFOODS LIMITED (CONTINUED)
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:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation. We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
∙Management override of controls to manipulate the company's key performance indicators to meet targets
∙Timing and completeness of revenue recognition
∙Management judgement in applying estimates with regards to standard costing calculations
∙Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading
Our audit procedures to respond to these risks included:
∙Discussions with management including consideration of known or potential instances of non-compliance with laws and regulations;
∙Discussions with management in relation to either suspected or alleged fraud, either internal or external;
∙Evaluation of controls within the company to prevent and detect irregularities;
∙Challenging assumptions and judgements made by management in relation to significant accounting estimates and judgements, particularly standard costing calculations and useful lives of assets;
∙Testing the completeness of revenue and matching with related costs;
∙Identifying and testing journal entries in particular journal entries with round sum values.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THISTLE SEAFOODS LIMITED (CONTINUED)
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.
for and on behalf of
Statutory Auditor
Kingshill View
Prime Four Business Park
Kingswells
AB15 8PU
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 29 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Thistle Seafoods Limited is a private company limited by shares, incorporated and domiciled in the United Kingdom. The address of the principal place of business is The Harbour, Boddam, Peterhead, Aberdeenshire, AB42 3AU. The principal activity of the company is the processing and sale of seafood products to the United Kingdom and its growing export markets.
2.Accounting policies
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:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Scatterty Holdings Limited as at 31st December 2023 and these financial statements may be obtained from Ogier House, The Esplanade, St Hellier, Jersey, JE4 9WG.
The company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
The directors remain confident that the company can continue to operate as a going concern. This assessment is based on the understanding that the company will continue to trade over the coming months. This, along with the company's retained reserves will allow the company to continue to meet it’s obligations as they fall due and operate as a going concern. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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. The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives,
Depreciation is provided on the following basis:
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.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit or loss account.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
Finance costs are charged to the Statement of Comprehensive Income in the period to which they relate.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Stock valuation The carrying value of stock including associated allocation of overheads are judgements made by management. Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. Useful lives and residual values are reassessed annually by management to ensure appropriate. They are assessed where necessary to reflect current estimates based on economic utilisation and physical condition.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 22
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The deferred tax charge has been calculated based on the rate of 25% which is the rate enacted on 24 May 2021.
Page 23
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 24
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company contributes to a defined pension scheme. Contributions are charged to the profit and loss as they become payable. Contributions totalling £316,931 (2023 - £219,000) were paid during the year.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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