REGISTERED NUMBER: 04552101 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

FOR

THEOS FOOD CO. LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement and Statement of Changes in Equity

9

Statement of Financial Position

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTORS:

Mr C Gavriel

Mr T C Gavriel

SECRETARY:

Mrs G Gavriel

REGISTERED OFFICE:

Unit 45 Empire Industrial Park

Aldridge

Walsall

WS9 8UY

REGISTERED NUMBER:

04552101 (England and Wales)

AUDITORS:

AGK Partnership Ltd

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

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

REVIEW OF BUSINESS

Theos Food Co is first and foremost a family run business with a real passion for food and are committed to delivering the highest standard of customer care and service. The company's headquarters in Aldridge in the West Midlands is equipped with purpose built state of art production facility over 20,000 sq ft.The site is fully approved by the UK competent authority for meat cutting and preparation, with all necessary hygiene and food safety certifications in place.

Theos Food Co differentiates itself from other suppliers in the market in its approach of sourcing all of its Grade 'A' quality chicken from UK suppliers. By forging strong relationships with its suppliers and supporting our local economy, we aim to establish Theos Food Co with a strong brand imagery that gives our customers a consistent quality product that meets the governments' nutritional guidelines which is fully compliant with the current legislation.

The director is pleased to report another successful year despite challenges. The turnover for FY 2024 was £23,248,689 (2023: £21,217,566).The turnover increased in comparison to previous period by approximately 9.57%, on a like for like basis. The gross margin increased from 16.49% to 16.77%.

The company continues to innovate to improve its already strong customer service and has invested in additional resources to maintain high standards expected in the ongoing growth of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The company’s financial instruments comprise cash, trade receivables and payables, hire purchase liabilities, and bank borrowings. These instruments expose the company to a range of financial risks, primarily:

Interest Rate Risk

The company is exposed to interest rate risk on variable-rate borrowings. Management monitors market rates regularly and seeks to fix borrowing costs where commercially appropriate.

Credit Risk

It is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The company aims to mitigate this risk by performing credit checks on all new customers, monitoring the financial health for its customers and reviewing credit limits for all its customers on a regular basis. The company has a dedicated credit control team who actively pursue customers in default for settlement.

Liquidity Risk

Liquidity is managed by careful cash flow forecasting and maintaining access to committed borrowing facilities to ensure sufficient funding for operations and planned capital investment.

The more significant risks and uncertainties faced by the company are consistent with the rest of the food production sector:

Purchase price of products

With the ongoing economic uncertainty caused by the Russia-Ukraine war, the cost of living crisis, and continued global supply chain disruptions presents a significant risk to the food sector. The conflict has led to increased prices and reduced availability of key commodities such as energy, grain, and animal feed, directly impacting meat production costs. We continue to monitor the price of fresh raw chicken and work closely with suppliers to manage volatility. In response, we are also negotiating more favourable supplier terms to mitigate cost pressures and help maintain price stability.

Food safety

Food Safety is the number one priority for our business. The company remains committed to ensuring it meets the nutritional standards set by the UK government. This risk is mitigated by sourcing products from established and reputable suppliers from within the UK. External consultants are also engaged to review the internal quality control procedures in place for cutting and meat preparation and implementing recommendations proposed.

Health and safety management

The company is committed to providing a safe place of work for all employees and to continuously improve its safety management systems. The system is maintained by external consultants, who review the working practices on regular basis and if necessary, make amendments in the procedures manual. It is mandatory requirement for all employees to read and acquaint themselves with the company's' health and safety manual.

Major Customer Risk

A significant portion of the company’s revenue is derived from a single related party customer. In the year ended 30 September 2024, approximately £12.86 million of revenue representing 55% of total sales, was made to this customer. This exposes the company to customer concentration risk, whereby the loss or change in terms of trade with this customer could have a material impact on the business. The company monitors this exposure closely and is actively exploring opportunities to diversify its customer base to reduce dependency on any single counterparty.

Expansion of Production Capacity

In 2025, we plan to upgrade the main poultry processing line to increase throughput and meet growing customer demand. This investment will improve efficiency and reduce unit costs.

We are actively developing a new range of value-added marinated and ready-to-cook chicken products, targeting both wholesale and retail distribution channels. These are expected to launch in late 2025.

The company is exploring expansion into regional export markets, initially focusing on Ireland and Northern Europe, where demand for British poultry products is strong. Plans are in place to invest in energy-efficient refrigeration and waste management systems, with the dual aim of reducing environmental impact and improving margins.

These developments will be financed through a combination of; Internally generated cash flows, Existing overdraft and loan facilities, and, if required, new borrowing under existing facility headroom.

We expect these initiatives to support continued growth, reduce operational risk, and improve long-term resilience.

KEY PERFORMANCE INDICATORS

The director considers the following as the key performance indicators:-

Description

2024

2023

Revenue

23,248,689

21,217,566

Gross profit

3,898,590

3,499,609

Operating profit

449,084

409,935

Profit before tax

346,294

334,624

Net assets

3,246,812

3,062,087

Gross margin

16.77%

16.49%

Current ratio

1.65

1.84

Revenue increased by £2.03 million (9.6%), reflecting both volume growth and price adjustments. Gross profit improved by £399k, with the gross margin increasing slightly to 16.77% (2023: 16.49%), driven by better supplier terms and improved operational efficiency. Operating and pre-tax profits also rose, highlighting the company’s focus on margin control despite cost pressures. The current ratio decreased slightly due receivables, but remains comfortably above 1.0, indicating healthy liquidity.

FINANCIAL POSITION

The company is in good health and remains strongly cash generative and has a good support from its bankers allowing the expansion of the business from its own resources. The results for the year and the financial position at the year end were considered satisfactory by the director who expects controlled growth and profitability to continue in the foreseeable future.

The directors are confident that the company will be able to strengthen its financial position by building on its existing systems and structure and grow the business with both existing and new clients in the future.

ON BEHALF OF THE BOARD:

Mr C Gavriel - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of processing and marinating of chicken and wholesale and distribution of chicken kebabs and other already processed food products.

DIVIDENDS

An interim dividend of £80,000 was paid during the year (2023: £70,000). No final dividend is recommended.

The total distribution of dividends for the year ended 30 September 2024 is £80,000.

EVENTS SINCE THE END OF THE YEAR

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

DIRECTORS

Mr C Gavriel has held office during the whole of the period from 1 October 2023 to the date of this report.

Other changes in directors holding office are as follows:

Mr T C Gavriel - appointed 2 October 2023

DONATIONS

Charitable donations for the year: £3,400 (2023: £3,201)

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, AGK Partnership Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C Gavriel - Director

26 September 2025

Opinion

We have audited the financial statements of Theos Food Co. Limited (the 'company') for the year ended 30 September 2024 which comprise the Income Statement and Statement of Changes in Equity, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 recognize 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 assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence; 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; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedure 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 law 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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alekos Christofi FCCA (Senior Statutory Auditor)

for and on behalf of AGK Partnership Ltd

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

26 September 2025

REVENUE

3

23,248,689

21,217,566

Cost of sales

19,350,099

17,717,957

GROSS PROFIT

3,898,590

3,499,609

Administrative expenses

3,449,578

3,089,674

449,012

409,935

Other operating income

73

-

OPERATING PROFIT

5

449,085

409,935

Interest payable and similar expenses

6

102,791

75,311

PROFIT BEFORE TAXATION

346,294

334,624

Tax on profit

7

81,569

92,686

PROFIT FOR THE FINANCIAL YEAR

264,725

241,938

Retained earnings at beginning of year

3,061,987

2,890,049

Dividends

8

(80,000

)

(70,000

)

RETAINED EARNINGS AT END OF YEAR

3,246,712

3,061,987

FIXED ASSETS

Intangible assets

10

3,867

7,734

Property, plant and equipment

11

2,069,427

2,054,367

2,073,294

2,062,101

CURRENT ASSETS

Inventories

12

1,849,633

2,199,793

Debtors

13

2,432,860

2,137,890

Cash at bank

37,836

29,087

4,320,329

4,366,770

CREDITORS

Amounts falling due within one year

14

2,606,400

2,363,449

NET CURRENT ASSETS

1,713,929

2,003,321

TOTAL ASSETS LESS CURRENT LIABILITIES

3,787,223

4,065,422

CREDITORS

Amounts falling due after more than one year

15

(232,905

)

(714,886

)

PROVISIONS FOR LIABILITIES

19

(307,506

)

(288,449

)

NET ASSETS

3,246,812

3,062,087

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

3,246,712

3,061,987

SHAREHOLDERS' FUNDS

3,246,812

3,062,087

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

Mr C Gavriel - Director

Cash flows from operating activities

Cash generated from operations

1

1,200,631

623,065

Interest paid

(43,957

)

(30,975

)

Interest element of hire purchase payments paid

(58,834

)

(44,336

)

Tax paid

(107,151

)

2,921

Net cash from operating activities

990,689

550,675

Cash flows from investing activities

Purchase of tangible fixed assets

(558,371

)

(790,072

)

Sale of tangible fixed assets

17,401

25,843

Director loan

-

51,375

Net cash from investing activities

(540,970

)

(712,854

)

Cash flows from financing activities

Loan repayments in year

(240,000

)

(240,000

)

Net movement in hire-purchase contracts

(69,595

)

121,761

Repayment of director loan

(51,375

)

-

Equity dividends paid

(80,000

)

(70,000

)

Net cash from financing activities

(440,970

)

(188,239

)

Increase/(decrease) in cash and cash equivalents

8,749

(350,418

)

Cash and cash equivalents at beginning of year

2

29,087

379,505

Cash and cash equivalents at end of year

2

37,836

29,087

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

2024

2023

£

£

Profit before taxation

346,294

334,624

Depreciation charges

480,720

449,451

Loss/(profit) on disposal of fixed assets

49,057

(2,100

)

Finance costs

102,791

75,311

978,862

857,286

Decrease/(increase) in inventories

350,160

(358,357

)

(Increase)/decrease in trade and other debtors

(294,970

)

88,038

Increase in trade and other creditors

166,579

36,098

Cash generated from operations

1,200,631

623,065

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

37,836

29,087

Year ended 30 September 2023

30.9.23

1.10.22

£

£

Cash and cash equivalents

29,087

379,505

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.23

Cash flow

At 30.9.24

£

£

£

Net cash

Cash at bank and in hand

29,087

8,749

37,836

29,087

8,749

37,836

Debt

Finance leases

(605,140

)

69,595

(535,545

)

Debts falling due within 1 year

(120,000

)

(120,000

)

(240,000

)

Debts falling due after 1 year

(370,000

)

360,000

(10,000

)

(1,095,140

)

309,595

(785,545

)

Total

(1,066,053

)

318,344

(747,709

)

1.	STATUTORY INFORMATION

Theos Food Co. Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The directors have assessed the company's ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. Having considered cash flow forecasts, available banking facilities and covenant compliance, the directors consider it appropriate to adopt the going concern basis of accounting. No material uncertainties have been identified.

Significant judgements and estimates

In the application of the company's accounting policies, the director is 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 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.

Significant judgements and estimates include:-

Valuation of debtors

Valuation of debtors is based upon ongoing assessments of the probable estimated losses inherent in the trade and other debtors portfolio. Assessments are conducted by the board employing a methodology and guidelines, which are continually monitored and improved. The primary component of this methodology comprises specific allowances and collective allowances.

A debtor is subject to impairment test when valid indications exist, at the assessment date, which demonstrate that the customer will not be able to meet his obligations and/or when the flow of receipts decelerates over time. Usually such indications include failure of communication with the customers and indications of significant financial difficulty.

Amounts individually provided for concern claims evaluated individually for impairment based upon management's best estimate of the present value of the cash flows which are expected to be received.

In assessing the need for collective allowance, management considers debtors in arrears over 121 days but excludes those for which there are valid indications that they will be collected.

The accuracy of provisions depends on the accuracy of future cash flows for specific allowances and the model assumptions and parameters used in determining collective allowances. While this necessarily involves judgement, management believes that their provisions are reasonable and supportable.

Assets impairment

The company reviews on an annual basis the carrying amounts of investments, tangible assets and intangible assets, in order to determine if there is an indication of impairment. If any such indication exists an impairment review is carried out in order to determine the extent of the impairment loss.

Useful lives of depreciable tangible and intangible assets

The management assesses the estimated useful lives and related depreciation & amortisation charges for purchased and internally generated intangible assets and tangible assets and reviews the assessment at regular intervals. Management estimates are based on the projected operating life cycle of these assets. Such estimates are not expected to change significantly, however, management may modify depreciation and amortisation rates wherever useful lives turn out to be different than previously estimated and writes down or writes off assets.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax.

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 costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Patents and licences is being written off in equal annual instalments over its estimated economic life of 5 years.

Property, plant and equipment

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

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended.

The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Freehold land and buildings - 2% on cost

Leasehold land and buildings - Over the life of the lease

Plant and machinery - 20% on reducing balance

Fixtures and fittings - 20% on reducing balance

Motor vehicle - 20% on reducing balance

Inventories

Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of inventory sold is recognised as an expense in the period in which the related revenue is recognised.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Financial instruments

Financial assets measured at amortised cost include trade receivables, other receivables (excluding VAT and prepayments), and cash at bank. Financial liabilities measured at amortised cost include bank loans and overdrafts, hire purchase obligations, trade payables, other creditors and accruals. The maturity of these liabilities is shown in Notes 15 and 16.

The company manages credit risk by carrying out checks on new customers, monitoring credit limits, and following up overdue amounts.

3.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2024

2023

£

£

Wholesale of meat

23,248,689

21,217,566

23,248,689

21,217,566

An analysis of revenue by geographical market is given below:

2024

2023

£

£

United Kingdom

23,248,689

21,217,566

23,248,689

21,217,566

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

830,213

725,825

Social security costs

73,176

65,734

Other pension costs

16,353

14,170

919,742

805,729

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

2024

2023

Directors

2

1

Administrative and sales

27

24

29

25

2024

2023

£

£

Directors' remuneration

7,280

7,280

5.	OPERATING PROFIT

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

2024

2023

£

£

Other operating leases

196,738

185,991

Depreciation - owned assets

476,853

441,740

Loss/(profit) on disposal of fixed assets

24,529

(2,100

)

Patents and licences amortisation

3,867

3,868

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Interest payable

43,957

30,975

HP interest payable

58,834

44,336

102,791

75,311

7.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

62,512

(71,795

)

Deferred tax

19,057

164,481

Tax on profit

81,569

92,686

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

346,294

334,624

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

86,574

83,656

Effects of:

Expenses not deductible for tax purposes

46,053

6,402

Income not taxable for tax purposes

(18

)

(1,346

)

Capital allowances in excess of depreciation

(43,643

)

(63,278

)

Utilisation of tax losses

(25,604

)

(25,075

)

Adjustments to tax charge in respect of previous periods

-

(71,795

)

Deferred tax

19,057

164,481

Other difference

(850

)

(359

)

Total tax charge

81,569

92,686

8.

DIVIDENDS

2024

2023

£

£

Ordinary shares shares of £1 each

Interim

80,000

70,000