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Registered number: 07285063









HOWARTH WINTERBROOK LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

 
HOWARTH WINTERBROOK LIMITED
 
 
COMPANY INFORMATION


Directors
O Woodgate 
V D Woodgate (resigned 28 August 2025)




Registered number
07285063



Registered office
The Key Building
Eastlands Industrial Estate

Leiston

Suffolk

United Kingdom

IP16 4LL




Trading Address
The Key Building
Eastlands Industrial Estate

Leiston

Suffolk

United Kingdom

IP16 4LL






Independent auditors
FLB Audit LLP
Chartered Accountants and Statutory Auditors

1010 Eskdale Road

Winnersh

Wokingham

England

RG41 5TS





 
HOWARTH WINTERBROOK LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11 - 12
Statement of cash flows
13 - 14
Analysis of net debt
15
Notes to the financial statements
16 - 35


 
HOWARTH WINTERBROOK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025

Introduction
 
The director presents the Strategic Report for the year ended 31 January 2025. The principal activities of the business are the manufacturing and trading of grain and animal feed ingredients.

Business review
 
The main objectives of Howarth Winterbrook Limited are to grow the scope of the trading operation in a profitable manner and to upscale the operations to continue to meet current and future customers' demands.
The company’s strategy is to work effectively with customers and suppliers to ensure the availability of existing product lines, and to introduce new product lines to existing customers and to attract new customers with reliable service, quality, value, and innovation. 
The business model currently in place is not expected to change, with sales and purchase negotiation and office administration carried out in Suffolk and dedicated milling, material cleaning and feed and grain storage throughout the UK. The company has added additional experience to the core team and believes it is well positioned to meet the growth plan of the business.   

Principal risks and uncertainties
 
Contract and Foreign Exchange exposure – The business makes some purchases of product in foreign currency and buys currency using forward contracts to mitigate currency risks. The company monitors forward contract exposure and exposure to foreign currency movements.
Interest rate risk – The business main banking facilities are provided on a variable interest rate basis, which is linked to the Bank of England base rate. The business stress tests rates at varying levels to ensure that it can withstand increases in rates.
Market and Price risk – The business uses its experience of the trade, IT tracking systems and senior management personnel to maintain an awareness of its financial position.
Quality – The business subscribes to various forms of accreditation that help manage feed safety risks and complies with audits by the accreditors on a regular basis. 
Credit risk – Customers who trade on credit terms are subject to verification procedures and receivable balances are continually monitored, and provision is made for doubtful debt where necessary. 

Page 1

 
HOWARTH WINTERBROOK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025

Financial key performance indicators
 
The director of the business considers the Key Performance Indicators of the Company to consist of Turnover, Gross Profit, Profit Before Tax and the Net Assets of the company.
Turnover over the last 12 months increased by £4.12m to £42.51m reflecting the growth in sales the business has generated from supporting the existing customer base and attracting new customers to the business. Turnover is calculated as the net amount invoiced to customers less any deductions, excluding value added tax and the sale of any fixed assets.
Gross profit is calculated by deducting the cost of goods sold from the turnover, this represents the earnings the company has generated from trading its products. This has remained consistent year on year.
Profit Before Tax over the last 12 months increased by £0.04m to £2.43m reflecting the benefit of higher sales to customers, less the additional costs of servicing the sales generated and investing to scale the business operations to support current and future customer needs. Profit Before Tax measures the total profit of the business from all operations before any taxation due and is calculated by deducting from the turnover and any other operating income, the cost of goods sold, administrative expenses, and any interest payable or receivable.
Net Assets over the last 12 months increased to £5.99m from £4.52m reflecting a positive trading year. Net Assets is calculated by deducting the total liabilities of the business from the total assets of the business.

Other key performance indicators
 
Volume (Metric Tonnes) – is measured by aggregating all the volume in metric tonnes sold to its customers.


This report was approved by the board on 29 October 2025 and signed on its behalf.



O Woodgate
Director

Page 2

 
HOWARTH WINTERBROOK LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2025

The director presents his report and the financial statements for the year ended 31 January 2025.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,778,785 (2024 - £1,806,563).

Dividends of £310,792 (2024: £262,318) were proposed and paid in the year.

Directors

The directors who served during the year were:

O Woodgate 
V D Woodgate (resigned 28 August 2025)

Future developments

Management is focussed on delivering its growth plan for the business and is maintaining good relationships with its customers, suppliers, and financial stakeholders.

Page 3

 
HOWARTH WINTERBROOK LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he 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 auditors are aware of that information.

Post balance sheet events

Post balance sheet events, there is a non-adjusting event, the business was approached to sell shares in the business to another organisation and has entered exclusive discussions with the party for a period of 120 days.

Auditors

The auditorsFLB Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 October 2025 and signed on its behalf.
 





O Woodgate
Director

Page 4

 
HOWARTH WINTERBROOK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOWARTH WINTERBROOK LIMITED
 

Opinion


We have audited the financial statements of Howarth Winterbrook Limited (the 'Company') for the year ended 31 January 2025, 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 policiesThe 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 January 2025 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
HOWARTH WINTERBROOK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOWARTH WINTERBROOK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's 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 Director's 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 director's 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 Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
HOWARTH WINTERBROOK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOWARTH WINTERBROOK LIMITED (CONTINUED)


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 an Auditors' 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:

• enquiring of management concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual results that may indicate risks of material
  misstatement due to fraud;
• reading minutes of meetings, enquiring from management and reviewing legal expenses for any indication of
  breaches of law & regulations;
• assessing any management override of controls by testing journal entries and other adjustments and
  reviewing accounting estimates fo indications of potential bias;
• sample testing revenue across the period to supporting documentation;
• evaluating any transactions that are unusual or outside the normal course of business; and
• maintaining alert to any fraud risks throughout the audit.


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 Auditors' 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 2006Our 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 Auditors' 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.


Page 7

 
HOWARTH WINTERBROOK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOWARTH WINTERBROOK LIMITED (CONTINUED)





Daniel Reid FCA (Senior statutory auditor)
  
for and on behalf of
FLB Audit LLP
 
Chartered Accountants and Statutory Auditors
  
1010 Eskdale Road
Winnersh
Wokingham
England
RG41 5TS

29 October 2025
Page 8

 
HOWARTH WINTERBROOK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025

As restated
2025
2024
Note
£
£

  

Turnover
 4 
42,511,608
38,388,389

Cost of sales
  
(36,790,162)
(32,775,803)

Gross profit
  
5,721,446
5,612,586

Distribution costs
  
(1,494,301)
(1,299,484)

Administrative expenses
  
(1,833,306)
(2,027,824)

Other operating income
 5 
185,042
159,482

Operating profit
 6 
2,578,881
2,444,760

Interest receivable and similar income
 10 
158
1,812

Interest payable and similar expenses
 11 
(152,480)
(57,424)

Profit before tax
  
2,426,559
2,389,148

Tax on profit
 12 
(647,774)
(582,585)

Profit for the financial year
  
1,778,785
1,806,563

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 16 to 35 form part of these financial statements.

Page 9

 
HOWARTH WINTERBROOK LIMITED
REGISTERED NUMBER: 07285063

BALANCE SHEET
AS AT 31 JANUARY 2025

2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 14 
-
10,000

Tangible assets
 15 
1,105,029
791,935

  
1,105,029
801,935

Current assets
  

Stocks
 16 
4,446,932
4,834,603

Debtors: amounts falling due within one year
 17 
5,111,583
3,848,176

Cash at bank and in hand
 18 
346,430
317,326

  
9,904,945
9,000,105

Creditors: amounts falling due within one year
 19 
(4,756,870)
(5,110,827)

Net current assets
  
 
 
5,148,075
 
 
3,889,278

Total assets less current liabilities
  
6,253,104
4,691,213

Creditors: amounts falling due after more than one year
 20 
(26,803)
(27,770)

Provisions for liabilities
  

Deferred tax
 23 
(238,152)
(143,287)

  
 
 
(238,152)
 
 
(143,287)

Net assets
  
5,988,149
4,520,156


Capital and reserves
  

Called up share capital 
 24 
400
400

Profit and loss account
 25 
5,987,749
4,519,756

  
5,988,149
4,520,156


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 October 2025.




O Woodgate
Director

The notes on pages 16 to 35 form part of these financial statements.

Page 10

 
HOWARTH WINTERBROOK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 February 2024
400
4,519,756
4,520,156


Comprehensive income for the year

Profit for the year
-
1,778,785
1,778,785
Total comprehensive income for the year
-
1,778,785
1,778,785


Contributions by and distributions to owners

Dividends: Equity capital
-
(310,792)
(310,792)


Total transactions with owners
-
(310,792)
(310,792)


At 31 January 2025
400
5,987,749
5,988,149


The notes on pages 16 to 35 form part of these financial statements.

Page 11

 
HOWARTH WINTERBROOK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 February 2023
400
2,975,511
2,975,911


Comprehensive income for the year

Profit for the year
-
1,806,563
1,806,563
Total comprehensive income for the year
-
1,806,563
1,806,563


Contributions by and distributions to owners

Dividends: Equity capital
-
(262,318)
(262,318)


Total transactions with owners
-
(262,318)
(262,318)


At 31 January 2024
400
4,519,756
4,520,156


The notes on pages 16 to 35 form part of these financial statements.

Page 12

 
HOWARTH WINTERBROOK LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025

2025
2024
£
£

Cash flows from operating activities

Profit for the financial year
1,778,785
1,806,563

Adjustments for:

Amortisation of intangible assets
10,000
20,000

Depreciation of tangible assets
100,969
74,237

Profit on disposal of tangible assets
-
(11,500)

Interest paid
152,480
57,424

Interest received
(158)
(1,812)

Taxation charge
647,774
582,585

Decrease/(increase) in stocks
387,670
(2,537,154)

(Increase)/decrease in debtors
(984,458)
542,760

(Decrease)/increase in creditors
(1,013,319)
628,003

Corporation tax (paid)
(466,000)
(605,816)

Foreign exchange
(278,940)
-

Net cash generated from operating activities

334,803
555,290


Cash flows from investing activities

Purchase of tangible fixed assets
(414,063)
(375,467)

Sale of tangible fixed assets
-
11,500

Interest received
149
1,812

Net cash from investing activities

(413,914)
(362,155)

Cash flows from financing activities

New secured loans
28,573
-

Repayment of loans
-
(435,951)

Movements on invoice discounting
(151,391)
277,425

Dividends paid
(310,792)
(262,318)

Interest paid
(152,480)
(57,423)

Movements on import loans
694,305
-

Net cash used in financing activities
108,215
(478,267)
Page 13

 
HOWARTH WINTERBROOK LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025


2025
2024

£
£



Net increase/(decrease) in cash and cash equivalents
29,104
(285,132)

Cash and cash equivalents at beginning of year
317,326
602,458

Cash and cash equivalents at the end of year
346,430
317,326


 
Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
346,430
317,326

346,430
317,326


The notes on pages 16 to 35 form part of these financial statements.

Page 14

 
HOWARTH WINTERBROOK LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2025




At 1 February 2024
Cash flows
At 31 January 2025
£

£

£

Cash at bank and in hand

317,326

29,104

346,430

Debt due within 1 year

(34,505)

(722,878)

(757,383)


282,821
(693,774)
(410,953)

The notes on pages 16 to 35 form part of these financial statements.

Page 15

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

1.


General information

Howarth Winterbrook Limited is a private company limited by shares. The company was incorporated in the United Kingdom and is registered in England and Wales. The registration number is 07285063. The registered office and trading address for Howarth Winterbrook Limited is The Key Building, Eastlands Industrial Estate, Leiston, Suffolk, United Kingdom, IP16 4LL. 

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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

During the year the company made a profit before tax of £2,426,559 and is in a net asset position. In considering the appropriateness of adopting the going concern basis in preparing the financial statements, the director has assessed the potential cash generation of the company for the foreseeable future (being twelve months from the date of approving these financial statements).
The director therefore believes there is sufficient evidence to support the going concern assumption. 

 
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.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 16

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

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

 
2.7

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.

Page 17

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan 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 accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
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.

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.


Page 18

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Goodwill
-
10%
straight lined

 
2.12

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.

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.

Page 19

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

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:

Plant and machinery
-
10% straight line
Motor vehicles
-
20% straight line
Improvements to premises
-
2% straight line
Office equipment
-
10% and 33.3% 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.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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 profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

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.

Page 20

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

 
2.17

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

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
Page 21

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)


2.18
Financial instruments (continued)

impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Page 22

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)


2.18
Financial instruments (continued)


Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the director is required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.
The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are outlined below:
• Making judgements based on historical experience on the level of provision required for impairment of inventories. Further information received after the statement of financial position date may impact on the level of provision required.
• The director uses judgement to provide against bad debts using knowledge of customers and experience.

Page 23

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Sale of goods
42,389,909
38,153,057

Services rendered
121,699
235,332

42,511,608
38,388,389


Analysis of turnover by country of destination:

As restated
2025
2024
£
£

United Kingdom
34,773,483
32,793,563

Rest of Europe
6,510,006
5,242,160

Rest of the world
1,228,119
352,666

42,511,608
38,388,389


The rest of world sales have become material in the year and as such the prior year numbers have been restated to ensure they are comparable.


5.


Other operating income

2025
2024
£
£

Other operating income
182,542
150,922

Service charge receivable
2,500
8,560

185,042
159,482


Page 24

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

6.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Exchange differences
(197,228)
218,002

Other operating lease rentals
183,612
139,413

Depreciation
100,969
74,237

Amortisation
10,000
20,000


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,500
14,500

8.


Employees

Staff costs, including director's remuneration, were as follows:


2025
2024
£
£

Wages and salaries
1,206,501
1,021,568

Social security costs
109,933
89,902

Cost of defined contribution scheme
64,472
66,534

1,380,906
1,178,004


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


        2025
        2024
            No.
            No.







Director
1
1



Production
9
7



Admin and finance
14
10

24
18

Page 25

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

9.


Director's remuneration

2025
2024
£
£

Director's emoluments
12,564
52,500

12,564
52,500


During the year retirement benefits were accruing to no directors (2024 - nil) in respect of defined
contribution pension schemes.


10.


Interest receivable

2025
2024
£
£


Other interest receivable
158
1,812

158
1,812


11.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
-
22,336

Other interest payable
152,480
35,088

152,480
57,424

Page 26

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

12.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
552,909
515,581


552,909
515,581


Total current tax
552,909
515,581

Deferred tax


Origination and reversal of timing differences
94,865
67,004

Total deferred tax
94,865
67,004


Tax on profit
647,774
582,585

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 24.03%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
2,426,559
2,389,149


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 24.03%)
606,640
574,113

Effects of:


Non-tax deductible amortisation of goodwill and impairment
2,500
4,806

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,985
994

Capital allowances for year in excess of depreciation
-
(574)

Other differences leading to an increase (decrease) in the tax charge
35,649
3,246

Total tax charge for the year
647,774
582,585

Page 27

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

13.


Dividends

2025
2024
£
£


Dividends declared and paid
310,792
262,318

310,792
262,318


14.


Intangible assets




Goodwill

£



Cost


At 1 February 2024
200,000



At 31 January 2025

200,000



Amortisation


At 1 February 2024
190,000


Charge for the year on owned assets
10,000



At 31 January 2025

200,000



Net book value



At 31 January 2025
-



At 31 January 2024
10,000



Page 28
 


 
HOWARTH WINTERBROOK LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025


15.


Tangible fixed assets






Plant and machinery
Motor vehicles
Improvements to premises
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 February 2024
656,387
39,401
195,152
57,790
948,730


Additions
276,308
-
129,809
7,946
414,063



At 31 January 2025

932,695
39,401
324,961
65,736
1,362,793



Depreciation


At 1 February 2024
105,929
23,641
16,678
10,547
156,795


Charge for the year on owned assets
78,236
7,880
4,302
10,551
100,969



At 31 January 2025

184,165
31,521
20,980
21,098
257,764



Net book value



At 31 January 2025
748,530
7,880
303,981
44,638
1,105,029



At 31 January 2024
550,458
15,760
178,474
47,243
791,935

Page 29
 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

16.


Stocks

As restated
2025
2024
£
£

Finished goods and goods for resale
4,446,932
4,834,603

4,446,932
4,834,603


Stock was previously classified as "Raw materials and consumables" in the prior years, however the nature of this stock is "Finished goods and goods for resale". As such the prior year amount has been restated to ensure appropriate and accurate disclosure of the nature of the stock.

17.


Debtors

2025
2024
£
£


Trade debtors
3,679,386
3,534,192

Other debtors
1,332,458
207,224

Prepayments and accrued income
99,739
106,760

5,111,583
3,848,176



18.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
346,430
317,326

346,430
317,326


Page 30

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

19.


Creditors: Amounts falling due within one year

2025
2024
£
£

Bank loans
757,383
34,505

Trade creditors
2,498,768
3,398,683

Corporation tax
302,490
215,581

Other taxation and social security
26,244
20,312

Invoice discounting
126,034
277,425

Other creditors
133,123
218,504

Accruals and deferred income
912,828
945,817

4,756,870
5,110,827


At the year end the company has aggregate current liabilities of £126,034 (2024: £277,425) with Santander UK PLC, secured against the assets of the company. The Santander Trade loans of £694,305 (2024: £Nil) are secured against the stock they are borrowed against. 


20.


Creditors: Amounts falling due after more than one year

2025
2024
£
£

Accruals and deferred income
26,803
27,770

26,803
27,770



21.


Loans


Analysis of the maturity of loans is given below:


2025
2024
£
£

Amounts falling due within one year

Bank loans
757,383
34,505


757,383
34,505




757,383
34,505


Page 31

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

22.


Financial instruments

2025
2024
£
£

Financial assets


Financial assets measured at amortised cost
5,325,427
4,011,233


Financial liabilities


Financial liabilities measured at amortised cost
4,168,869
4,870,967


Financial assets measured at amortised cost comprise of cash, trade debtors, other debtors and accrued
income.


Financial liabilities measured at amortised cost comprise of bank loans, trade creditors, accruals, other
creditors and invoice discounting.
The Company enters into foreign currency contracts to mitigate the exchange rate risk for certain foreign exchange currency transactions.
As at 31 January 2025, the outstanding contracts mature within 6 months of the year end.
The Company is committed to buy $10,867,185 at fixed rates. The forward contracts are measured at fair value using a forward exchange rate. As at 31 January 2025, the fair value of the forward contracts was £278,940. The associated debtor is included in other debtors.


23.


Deferred taxation




2025


£






At beginning of year
(143,287)


Charged to profit or loss
(94,865)



At end of year
(238,152)

Page 32

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
 
23.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
(249,374)
(154,644)

Pension allowable when paid
2,611
2,746

General provision
8,611
8,611

(238,152)
(143,287)




 


24.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



200 (2024 - 200) A Ordinary shares of £1.00 each
200
200
72 (2024 - 72) B Ordinary shares of £1.00 each
72
72
100 (2024 - 100) C Ordinary shares of £1.00 each
100
100
28 (2024 - 28) D Ordinary shares of £1.00 each
28
28

400

400



25.


Reserves

Profit and loss account

Includes all current and prior period retained earnings.

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HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

26.


Prior year adjustment

During the year management reviewed their allocation of costs in the Statement of Comprehensive Income and noted that costs had incorrectly been allocated to Cost of Sales when a portion related to Cost of Sales, Administrative expenses and Distribution costs. Management have therefore corrected this through a prior year adjustment. This impact reduces Cost of Sales by £1,587,322 and increases Administrative expenses by £287,838 and increases Distribution costs by £1,299,484.  This impacts the Statement of Comprehensive Income. It has no impact on tax.
The director has made these restatements as he believes that they enable the financial statements to provide a true and fair view.


27.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately form 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 £64,472 (2024: £66,534). Contributions totalling £10,443 (2024: £10,983) were payable to the fund at the balance sheet date and are included in other creditors. 


28.


Commitments under operating leases

At 31 January 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
163,326
155,465

Later than 1 year and not later than 5 years
191,472
318,359

354,798
473,824

Page 34

 
HOWARTH WINTERBROOK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025

29.


Related party transactions

The transactions and balances relate to other related party companies due to their associations with directors of the company. These are disclosed below:


2025
2024
£
£

Amounts owed from related parties
1,016,178
132,136
Amounts owed to related parties
(99,296)
(207,519)
Dividends paid to related parties
310,792
262,318
Purchases from related parties
725,355
77,327
Sales to related parties
(251,623)
(627,827)
Rental expense with related parties
141,805
117,000
Net short-term loans payable movements advances/(repayments)
(108,224)
19,748
Net short-term loans receivable movements (advances)/repayments
(836,986)
-

During the year £50,036 was advanced to the director and was repaid in the year. Therefore no balance is outstanding at year end.


30.


Post balance sheet events

Post balance sheet events, there is a non-adjusting event, the business was approached to sell shares in the business to another organisation and has entered exclusive discussions with the party for a period of 120 days. 


31.


Controlling party

Note that Howarth Winterbrook (Sales) Limited and Winterbrook Ingredients Limited each have 50% shareholding in the company. As such neither are considered a parent. These companies are then held directly by members of the Woodgate family with no individual party having control. Therefore there is no individual controlling party.

 
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