Peter Gradon Meat and Poultry Marketing Limited Company accounts

COMPANY REGISTRATION NUMBER: 03952266

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

FINANCIAL STATEMENTS

2 November 2024

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 2 NOVEMBER 2024

CONTENTS	PAGE

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of comprehensive income	10

Statement of financial position	11

Statement of changes in equity	13

Statement of cash flows	14

Notes to the financial statements	16

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	Mr P W Gradon
	R Lesiak

Company secretary	Mr P W Gradon

Registered office	Marsh Dene Farm
	Marsh Lane
	Southowram
	Halifax
	West Yorkshire
	HX3 9NR

Auditor	Streets Audit LLP
	Chartered accountants & statutory auditor
	Tower House
	Lucy Tower Street
	Lincoln
	LN1 1XW

Bankers	Virgin Money
	7 Waterhouse Street
	Halifax
	West Yorkshire
	HX1 1XZ

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

STRATEGIC REPORT

YEAR ENDED 2 NOVEMBER 2024

The directors have pleasure in presenting the strategic report of the company for the 53-week period from 04 November 2023 to 2 November 2024. PRINCIPAL ACTIVITIES AND BUSINESS REVIEW The principal activity of the company during the year was the processing of meat and poultry products. SALES AND PROFITABILITY Turnover has reduced this year to £9,755,143 from £11,147,795 a decrease of 12.5%. The soaring cost of raw chicken has proven a challenge due to increased feed and fuel costs and avian flu in the UK and EU which has resulted in fewer birds being available and has an impact on turnover and gross profit. The gross profit has decreased from 16% to 14.58%. We continue to feel the effects of increased fuel costs and other distribution expenses which decreased by 6.95% from £652,381 to £646,264. However, distribution costs are linked to turnover and as a precenting of turnover have increased from 5.85% to 69.62%. The increase in minimum wages has also made a significant impact on costs. The increased costs are likely to continue in 2024/25 as the current economic climate continues to be challenging. Administration expenses have increased due to price increases. The cost of lighting and heating are also a contributory factor. We continue to pass some of these increased costs on to our customers and email invoices to customer to reduce postal costs due to the increase in postal charges. Administration expenses have been reduced by the reversal of pension contribution of £420,000 and a further £98,000 related interest adjustment. The turnover in the current year is expected to return to in excess of £11,000,000, partially through price increases and partially through additional product. The investment property has seen an increase in value from £1,630,000 to £1,980,000. BALANCE SHEET AND LIQUIDITY The company has a strong balance sheet with net asset of £9,731,246, (2023 - £8,911,029) the current liquidity ratio showing a healthy 6.2%. (2023 - 5.86%) At the year-end, the company was owed £4,102,365. (2023 - £4,258,365.), by Gradon Estates Limited, a related property investment company. FUTURE DEVELOPMENTS We are pleased to report that sales are continuing to recover with projected turnover remaining in the region of £11,500,000 and gross profit margins continuing at a similar level. Unfortunately, we are expecting an increase in distribution costs due to the continuing rise in fuel, packaging, maintenance and service costs as the economy remains subdued. The company is continually monitoring the maintenance programme to ensure all property and equipment are, maintained to the highest standards and that we work efficiently to keep costs down. PRINCIPAL RISKS AND UNCERTAINTIES The Directors continually monitor the risks to the company and take action to minimise the risks as much as possible. The Directors operate strict internal controls to ensure all hygiene compliance procedures are adhered to. Costs and supply pressures are a key focus, especially in the volatility of the currency markets when trading within the EU and bringing goods into the country. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES trade debtors and trade creditors, which arise directly from its operations. The main financial risk facing the company is customer credit risk, which is managed through credit control policies and procedures. Price risk, cash flow risk and liquidity risk have also been and will continued to be managed in a controlled manner reducing the overall exposure of the company to a minimum.

This report was approved by the board of directors on 31 October 2025 and signed on behalf of the board by:

Mr P W Gradon

Director

Registered office:

Marsh Dene Farm

Marsh Lane

Southowram

Halifax

West Yorkshire

HX3 9NR

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

DIRECTORS' REPORT

YEAR ENDED 2 NOVEMBER 2024

The directors present their report and the financial statements of the company for the year ended 2 November 2024 .

DIRECTORS

The directors who served the company during the year were as follows:

Mr P W Gradon
R Lesiak

DIVIDENDS

Particulars of recommended dividends are detailed in note 13 to the financial statements.

DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company has chosen to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 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 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. AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 31 October 2025 and signed on behalf of the board by:

Mr P W Gradon

Director

Registered office:

Marsh Dene Farm

Marsh Lane

Southowram

Halifax

West Yorkshire

HX3 9NR

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PETER GRADON MEAT AND POULTRY MARKETING LIMITED

YEAR ENDED 2 NOVEMBER 2024

OPINION

We have audited the financial statements of Peter Gradon Meat and Poultry Marketing Limited (the 'company') for the year ended 2 November 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 2 November 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION

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

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. - We identified the laws and regulations applicable to the company through discussions with the directors. - We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Safe and Local Supplier Approval. - We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting 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; - 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; - 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; - enquiring of management as to actual and potential litigation and claims; There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. USE OF OUR REPORT

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

Sally Shacklock BA FCA

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered accountants & statutory auditor

Tower House

Lucy Tower Street

Lincoln

LN1 1XW

31 October 2025

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 2 NOVEMBER 2024

			Period from
		Year to	29 Oct 22 to
		2 Nov 24	3 Nov 23
Note		£	£
TURNOVER	4	9,755,143	11,147,795

Cost of sales	8,333,249	9,359,782
	-------------	---------------
GROSS PROFIT	1,421,894	1,788,013

Distribution costs		646,264	652,381
Administrative expenses		( 19,202)	802,150
Property rental expenses	5	( 4,378)	11,001
		-------------	-------------
OPERATING PROFIT	6	790,454	344,483

Other interest receivable and similar income	10	191,600	160,563
Interest payable and similar expenses	11	( 97,454)	36,873
		-------------	-------------
PROFIT BEFORE TAXATION		1,079,508	468,173

Tax on profit	12	322,291	88,475
		-------------	----------
PROFIT FOR THE FINANCIAL YEAR		757,217	379,698
		-------------	----------

Remeasurement of net defined benefit liability	63,000	185,000
	----------	----------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	820,217	564,698
	----------	----------

All the activities of the company are from continuing operations.

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

STATEMENT OF FINANCIAL POSITION

2 November 2024

	2024		2023
Note	£	£	£	£

FIXED ASSETS

Tangible assets	14	349,472	254,055
Investments	15	1,980,000	1,630,000
		-------------	-------------
		2,329,472	1,884,055

CURRENT ASSETS

Stocks	16	100,033	78,811
Debtors	17	5,669,976	5,809,680
Cash at bank and in hand		3,563,161	3,452,508
		-------------	-------------
		9,333,170	9,340,999

CREDITORS: amounts falling due within one year	18	1,550,736		1,594,297
		-------------		-------------
NET CURRENT ASSETS			7,782,434		7,746,702
			---------------		-------------
TOTAL ASSETS LESS CURRENT LIABILITIES			10,111,906		9,630,757

CREDITORS: amounts falling due after more than one year	19		7,709		16,667

PROVISIONS	21	372,951	122,061
		---------------	-------------
NET ASSETS EXCLUDING DEFINED BENEFIT PENSION PLAN LIABILITY		9,731,246	9,492,029

Defined benefit pension plan liability	23	–	( 581,000)
		-------------	-------------
NET ASSETS INCLUDING DEFINED BENEFIT PENSION PLAN LIABILITY		9,731,246	8,911,029
		-------------	-------------

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

2 November 2024

	2024		2023
Note	£	£	£	£

CAPITAL AND RESERVES

Called up share capital	25	2,000	2,000
Revaluation reserve	26	720,556	529,656
Profit and loss account	26	9,008,690	8,379,373
		-------------	-------------
SHAREHOLDERS FUNDS		9,731,246	8,911,029
		-------------	-------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 31 October 2025 , and are signed on behalf of the board by:

Mr P W Gradon

Director

Company registration number: 03952266

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 2 NOVEMBER 2024

			Called up share capital	Revaluation reserve	Profit and loss account	Total
			£	£	£	£
AT 29 OCTOBER 2022			2,000	639,464	8,204,867	8,846,331

Profit for the year					379,698	379,698
Other comprehensive income for the year:
	Reclassification from revaluation reserve to profit and loss account		–	( 109,808)	109,808	–
	Remeasurement of net defined benefit liability		–	–	185,000	185,000
			-------	----------	-------------	-------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR			–	( 109,808)	674,506	564,698

Dividends paid and payable		13	–	–	( 500,000)	( 500,000)
			-------	----------	-------------	-------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS			–	–	( 500,000)	( 500,000)

AT 3 NOVEMBER 2023			2,000	529,656	8,379,373	8,911,029

Profit for the year					757,217	757,217
Other comprehensive income for the year:
	Reclassification from revaluation reserve to profit and loss account		–	190,900	( 190,900)	–
	Remeasurement of net defined benefit liability		–	–	63,000	63,000
			-------	----------	-------------	-------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR			–	190,900	629,317	820,217

			-------	----------	-------------	-------------
AT 2 NOVEMBER 2024			2,000	720,556	9,008,690	9,731,246
			-------	----------	-------------	-------------

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

STATEMENT OF CASH FLOWS

YEAR ENDED 2 NOVEMBER 2024

	2024	2023
	£	£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the financial year	757,217	379,698

Adjustments for:
Depreciation of tangible assets	87,929	71,298
Fair value adjustment of investment property	( 350,000)	265,000
Government grant income	( 171)	( 171)
Other interest receivable and similar income	( 191,600)	( 160,563)
Interest payable and similar expenses	(133,453)	72,873
Gains on disposal of tangible assets	–	( 19,971)
Defined benefit pension plan employer contributions	( 581,000)	–
Tax on profit	322,291	88,475
Accrued expenses	3,557	31,808

Changes in:
Stocks	( 21,222)	22,111
Trade and other debtors	139,704	143,014
Trade and other creditors	6,662	129,371
Defined pension remeasurement	99,000	–
	----------	-------------
Cash generated from operations	138,914	1,022,943

Interest paid	97,454	( 36,873)
Interest received	191,600	160,563
Tax paid	( 137,682)	( 154,600)
	----------	-------------
Net cash from operating activities	290,286	992,033
	----------	-------------

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible assets	( 183,346)	( 177,945)
Proceeds from sale of tangible assets	–	20,001
	----------	-------------
Net cash used in investing activities	( 183,346)	( 157,944)
	----------	-------------

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings	( 10,000)	( 10,000)
Government grant income	171	171
Payments of finance lease liabilities	13,542	–
Dividends paid	–	( 500,000)
	----------	-------------
Net cash from/(used in) financing activities	3,713	( 509,829)
	----------	-------------

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

STATEMENT OF CASH FLOWS (continued)

YEAR ENDED 2 NOVEMBER 2024

	2024	2023
Note	£	£
NET INCREASE IN CASH AND CASH EQUIVALENTS	110,653	324,260
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	3,452,508	3,128,248
	-------------	-------------
CASH AND CASH EQUIVALENTS AT END OF YEAR	3,563,161	3,452,508
	-------------	-------------

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 2 NOVEMBER 2024

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Marsh Dene Farm, Marsh Lane, Southowram, Halifax, West Yorkshire, HX3 9NR.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a historical cost basis as modified by the revaluation of certain financial assets and liabilities measures at fair value through profit or loss. The financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

From a review of management information, the directors have a reasonable expectation that the company has sufficient resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing it financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There only judgements, accounting estimates or assumptions that have a significant impact on the financial statements is the revaluation of investment properties to fair value.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Factory improvements	-	4% straight line
Plant and machinery	-	10% straight line
Office equipment	-	25% straight line
Motor vehicles	-	25% reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment of fixed assets

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

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Defined benefit plans

The company operates a defined benefit pension scheme for employees. The assets of the scheme are held separately from those of the company. Pension scheme liabilities are recorded in the balance sheet at the present value of the defined obligation at that date. The defined obligation is calculated on an annual basis by independent actuaries. Actuarial gains and losses are recognised in full in the period in which they occur and are shown in Other Comprehensive Income. The deferred tax relating to a defined benefit asset/liability is offset against the defined benefit asset/liability and not included with other deferred tax assets or liabilities. Current and past service costs, along with settlements or curtailments, are charged to the Income Statement. Interest on pension plan liabilities are recognised within finance expense.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. TURNOVER

Turnover arises from:

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Sale of goods	9,755,143	11,147,795
	-------------	---------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. PROPERTY RENTAL EXPENSES

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Rental income	15,780	11,365
Government grant income	171	171
Other operating income	( 20,329)	( 535)
	---------	---------
	( 4,378)	11,001
	---------	---------

6. OPERATING PROFIT

Operating profit or loss is stated after charging/crediting:

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Depreciation of tangible assets	87,929	71,298
Gains on disposal of tangible assets	–	( 19,971)
Fair value adjustments to investment property	( 350,000)	265,000
Impairment of trade debtors	–	42,701
Operating lease rentals	14,440	11,894
Foreign exchange differences	–	17
	----------	----------

7. AUDITOR'S REMUNERATION

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Fees payable for the audit of the financial statements	4,000	3,100
	-------	-------

Fees payable to the company's auditor and its associates for other services:

Other non-audit services	3,975	3,700
	-------	-------

8. STAFF COSTS

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	37	37
Distribution staff	10	10
Administrative staff	7	6
Management staff	2	2
	----	----
	56	55
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Wages and salaries	1,627,632	1,458,896
Social security costs	134,577	129,839
Other pension costs	( 392,368)	26,956
	-------------	-------------
	1,369,841	1,615,691
	-------------	-------------

9. DIRECTORS' REMUNERATION

The directors' aggregate remuneration in respect of qualifying services was:

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Remuneration	87,865	94,321
Company contributions to defined contribution pension plans	2,028	1,982
	---------	---------
	89,893	96,303
	---------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	1	1
	----	----

10. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Interest on loans and receivables	20,000	13,425
Interest on cash and cash equivalents	171,600	147,138
	----------	----------
	191,600	160,563
	----------	----------

11. INTEREST PAYABLE AND SIMILAR EXPENSES

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Interest on banks loans and overdrafts	546	873
Net finance costs in respect of defined benefit pension plans	( 98,000)	36,000
	---------	---------
	( 97,454)	36,873
	---------	---------

12. TAX ON PROFIT

Major components of tax expense

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£

Current tax:

UK current tax expense	71,402	127,900

Deferred tax:

Origination and reversal of timing differences	250,889	( 39,425)
	----------	----------
Tax on profit	322,291	88,475
	----------	----------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).

		Period from
	Year to	29 Oct 22 to
	2 Nov 24	3 Nov 23
	£	£
Profit on ordinary activities before taxation	1,079,508	468,173
	-------------	----------
Profit on ordinary activities by rate of tax	269,877	183,300
Effect of expenses not deductible for tax purposes	626	376
Effect of capital allowances and depreciation	( 24,101)	18,074
Unused tax losses	( 45,500)	–
Tax not due on fair value revaluation	100,305	( 76,350)
Deferred tax movement	21,084	(36,925)
	-------------	----------
Tax on profit	322,291	88,475
	-------------	----------

13. DIVIDENDS

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	–	500,000
	----	----------

14. TANGIBLE ASSETS

	Long leasehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 4 November 2023	39,925	964,640	31,289	499,387	1,535,241
Additions	6,667	37,000	–	139,679	183,346
	---------	-------------	---------	----------	-------------
At 2 November 2024	46,592	1,001,640	31,289	639,066	1,718,587
	---------	-------------	---------	----------	-------------
Depreciation
At 4 November 2023	19,141	939,496	31,273	291,276	1,281,186
Charge for the year	1,605	15,439	–	70,885	87,929
	---------	-------------	---------	----------	-------------
At 2 November 2024	20,746	954,935	31,273	362,161	1,369,115
	---------	-------------	---------	----------	-------------
Carrying amount
At 2 November 2024	25,846	46,705	16	276,905	349,472
	---------	-------------	---------	----------	-------------
At 3 November 2023	20,784	25,144	16	208,111	254,055
	---------	-------------	---------	----------	-------------

15. INVESTMENTS

	Investment property
	£
Cost
At 4 November 2023	1,630,000
Revaluations	350,000
	-------------
At 2 November 2024	1,980,000
	-------------
Impairment
At 4 November 2023 and 2 November 2024	–
	-------------

Carrying amount
At 2 November 2024	1,980,000
	-------------
At 3 November 2023	1,630,000
	-------------

All investment properties were professionally valued by Boultons Harrisons Ltd as at 31 July 2025, on an open market-value-basis.

Investments held at valuation

In respect of investments held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:

	Investment property
	£
At 2 November 2024
Aggregate cost	1,100,344
Aggregate depreciation	–
	-------------
Carrying value	1,100,344
	-------------

At 3 November 2023
Aggregate cost	1,100,344
Aggregate depreciation	–
	-------------
Carrying value	1,100,344
	-------------

16. STOCKS

	2024	2023
	£	£
Raw materials and consumables	100,033	78,811
	----------	---------

17. DEBTORS

	2024	2023
	£	£
Trade debtors	793,388	810,874
Prepayments and accrued income	48,815	56,300
Other debtors	4,827,773	4,942,506
	-------------	-------------
	5,669,976	5,809,680
	-------------	-------------

18. CREDITORS: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	10,000	10,000
Trade creditors	801,585	743,647
Accruals and deferred income	122,751	119,365
Corporation tax	71,277	137,557
Social security and other taxes	197,991	26,605
Obligations under finance leases and hire purchase contracts	12,500	–
Gradon Trusts	327,727	550,000
Other creditors	6,905	7,123
	-------------	-------------
	1,550,736	1,594,297
	-------------	-------------

The following liabilities disclosed under creditors falling due within one year are secured by the company:

	2024	2023
	£	£
Obligations under finance leases and hire purchase contracts	12,500	–
	---------	----

19. CREDITORS: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	6,667	16,667
Obligations under finance leases and hire purchase contracts	1,042	–
	-------	---------
	7,709	16,667
	-------	---------

The following liabilities disclosed under creditors falling due after more than one year are secured by the company:

	2024	2023
	£	£
Obligations under finance leases and hire purchase contracts	1,042	Nil
	-------	----

20. FINANCE LEASES AND HIRE PURCHASE CONTRACTS

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	12,500	–
Later than 1 year and not later than 5 years	1,042	–
	---------	----
	13,542	–
	---------	----

21. PROVISIONS

	Deferred tax (note 22)
	£
At 4 November 2023	122,061
Provisions created during the year	150,584
Provisions released during the year	100,306
	----------
At 2 November 2024	372,951
	----------

22. DEFERRED TAX

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 21)	372,951	122,061
	----------	----------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	84,351	63,267
Fair value adjustment of investment property	159,100	58,794
Provisions	129,500	–
	----------	----------
	372,951	122,061
	----------	----------

23. EMPLOYEE BENEFITS

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 27,632 (2023: £ 26,956 ).

Defined benefit plans

The company confirms that the pension obligations are no longer due and with HMRC approval reversed the original provision in the defined benefit scheme in respect of key employees. The actuarial valuation of the obligation at 2023 was £581,000. During the year the expense incurred was £nil (2023 - £36,000).

	2024	2023
	£	£
Present value of defined benefit obligations	581,000	581,000
Reversal of pension provision	(581,000)	–
Liability recognised in the balance sheet	–	581,000

The statement of financial position net defined benefit liability is determined as follows:

	2024	2023
	£	£
Present value of defined benefit obligations	–	( 581,000)
	----	----------
	–	581,000
	----	----------

Changes in the present value of the defined benefit obligations are as follows:

	2024
	£
At 4 November 2023	581,000
Reversal of pension provision	( 581,000)
	----------
At 2 November 2024	–
	----------

24. GOVERNMENT GRANTS

The amounts recognised in the financial statements for government grants are as follows:

	2024	2023
	£	£

Recognised in creditors:

Deferred government grants due within one year	341	512
	----	----

Recognised in other operating income:

Government grants released to profit or loss	171	171
	----	----

25. CALLED UP SHARE CAPITAL

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	2,000	2,000	2,000	2,000
	-------	-------	-------	-------

26. RESERVES

Profit and loss account - This reserve records retained earnings and accumulated losses. Revaluation reserve - This reserve balance represents the investment property value above its cost, less associated deferred tax.

27. ANALYSIS OF CHANGES IN NET DEBT

	At 4 November 2023	Cash flows	At 2 November 2024
	£	£	£
Cash at bank and in hand	3,452,508	110,653	3,563,161
Debt due within one year	(10,000)	(12,500)	(22,500)
Debt due after one year	(16,667)	8,958	(7,709)
	-------------	----------	-------------
	3,425,841	107,111	3,532,952
	-------------	----------	-------------

28. CAPITAL COMMITMENTS

Capital expenditure contracted for but not provided for in the financial statements is as follows:

	2024	2023
	£	£
Tangible assets	–	98,121
	----	---------

29. OPERATING LEASES

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	13,642	12,578
Later than 1 year and not later than 5 years	18,853	11,275
	---------	---------
	32,495	23,853
	---------	---------

PETER GRADON MEAT AND POULTRY MARKETING LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 2 NOVEMBER 2024

30. RELATED PARTY TRANSACTIONS

The company operates rent free from premises owned by Mr P W Gradon . Mr P Gradon and Mr D Gradon, son of Peter Gradon, are directors and controlling shareholders of Gradon Estates Limited. Gradon Estates Limited has a loan amounting of £4,102,603 (2023 - £4,258,365) from Peter Gradon Meat and Poultry Marketing Limited. The loan is interest free and repayable on demand. There are balances totalling £327,727 (2023 - £550,000) due to three trusts of which family members of one of the directors are beneficiaries, in relation to dividends payable. There is also a loan to a family member of one of the directors of £234,167 (2023 - £225,000) which was still outstanding at 3 November 2024.