Registration number:
March Foods Ltd
for the Year Ended 31 May 2025
March Foods Ltd
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
March Foods Ltd
Company Information
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Directors |
S P Flax R A Flax T E A Southwell |
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Registered office |
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Auditors |
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March Foods Ltd
Strategic Report for the Year Ended 31 May 2025
The directors present their strategic report for the year ended 31 May 2025.
Principal activity
The principal activity of the company is that of a specialist food contract packing and manufacturing operation.
Fair review of the business
Our review is consistent with the size and nature of our business. The company provides food contract manufacturing services to both brand owners and supermarkets through own label products.
The business is wholly owned by the Delightful Food Group who are one of our key customers (Italian Beverage Company Ltd). The Group’s accounting date moved to May from December last year, so the prior year accounts reflect a 17-month period to 31st May 2024.
Due to the extended reporting period of 17 months, the comparative figures presented in the financial statements for the previous period cover a longer timeframe than the current year figures, which is for a 12 month. Consequently, the financial results for the current period may not be directly comparable to those of the previous period.
Business from the Italian Beverage Company has grown during the period alongside solid growth from some of our other key customers. March Foods will continue to operate as a stand-a-lone contract manufacturing company producing goods for the Italian Beverage Company and other key brand owners.
The environment in which the business operates continues to be competitive and the company is always looking for new clients and new packaging formats to present to its existing customer base.
Key Performance Indicators
We measure the achievement of our objectives both through the use of qualitative assessments and through monitoring of quantitative indicators.
To provide a full and rounded view of our business, we use non-financial as well as financial measures. Although all these measures are important, some are considered to be more significant than others, and these more significant measures are designated KPIs. KPIs are used as our primary measure of whether we are achieving our principal strategic aims of sustainable growth, superior financial performance and delivering high quality products on time.
Turnover, Gross Profit and Operating Profit
We seek to deliver growth in earnings through improved efficiencies and growth in our operations. The generation of earnings is essential to deliver growth and to fund future investment in the business. Overheads are reviewed, monitored and controlled by management through formal procedures including the preparation of monthly management accounts.
Future Developments
The environment in which the business operates continues to be competitive and the company is always looking for new clients and new packaging formats to present to its existing customer base.
March Foods Ltd
Strategic Report for the Year Ended 31 May 2025
Financial Instruments
The company has exposure to price, credit, liquidity, and cash flow risk arising from trading activities. The company has support from the parent company for the above risk and has limited exposure to foreign exchange.
Most of the customers are billed in sterling and majority of the supplier are also paid in sterling within agreed trading terms. In addition, the company maintains health cash reserves.
Investment in business
The directors continue to invest in maintaining and improving plant and machinery, health and saftey compliance and foods quality standards to maintain high quality at packaging delivering good service to customers.
The company's key financial and other performance indicators during the year/period were as follows:
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Financial KPIs |
Unit |
2025 |
2024 |
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Turnover |
£ |
12,245,821 |
15,784,666 |
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Gross Profit |
£ |
5,162,593 |
6,619,446 |
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Operating profit |
£ |
550,383 |
928,593 |
Principal risks and uncertainties
The business has risk management processes that seek to identify, assess and manage financial risk.
The following risks have been identified:
The main risk to the continued success of the company is the current economic uncertainty. However, the company is well placed to manage the risk in an effective manner.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers. Provision for doubtful debts is made as necessary.
Approved and authorised by the
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March Foods Ltd
Directors' Report for the Year Ended 31 May 2025
The directors present their report and the financial statements for the year ended 31 May 2025.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Results and Dividends
The results for the year and the state of affairs of the company at the year end are set out in the financial statements on pages 11 to 29. The director do not recommend a final divided. It is proposed that retained profit for the year of £325,666 be transferred to the reserves.
The interim dividend paid during the year was £- (2024-£204,680).
Environmental matters
March Foods Ltd takes its environmental responsibilities seriously and is trying to reduce its own carbon footprint as much as possible.
Future developments
The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed.
Going concern
The directors have reviewed the budgets / future expected performance for the coming years and other developments as well as their anticipated continuing impact and they have concluded that the company is a going concern and will continue to be so for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of MG Audit Services Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
March Foods Ltd
Directors' Report for the Year Ended 31 May 2025
Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 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 to be contained in the directors' report. In addition, review of the business and description of the principal risks and uncertainities are included in the strategic report.
Post balance sheet events
There are no matters to report as post balance sheet events.
Approved by the
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March Foods Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
March Foods Ltd
Independent Auditor's Report to the Members of March Foods Ltd
Opinion
We have audited the financial statements of March Foods Ltd (the 'company') for the year ended 31 May 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 May 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 auditor 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 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
March Foods Ltd
Independent Auditor's Report to the Members of March Foods Ltd
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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 Responsibilities for the audit of the financial statements
March Foods Ltd
Independent Auditor's Report to the Members of March Foods Ltd
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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
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Enquiries of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and - the internal controls established to mitigate risks related to fraud or non-compliance of laws and regulations; and |
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Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
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We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Bribery Act 2010, Data protection Act 2018, Employment Law. Health and Safety Legislation and FRS 102. |
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As a result of these procedures, we considered the particular areas that were susceptible to misstatement due to fraud were in respect of revenue recognition, complex related party transactions and management override. Our procedures to respond to risk identified include the following: |
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reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. |
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testing to ensure completeness of revenue and accuracy & existence of product purchase. |
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enquiring of management concerning actual and potential litigation and claims |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
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in addressing the risk of fraud through management override of controls, testing the appropriateness of any journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of the company's operations. |
A further description of our responsibilities is available 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
March Foods Ltd
Independent Auditor's Report to the Members of March Foods Ltd
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.
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For and on behalf of
Harrow
Middlesex
HA1 1BH
March Foods Ltd
Profit and Loss Account for the Year Ended 31 May 2025
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Note |
2025 |
1 January |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
|
- |
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Operating profit |
711,100 |
928,593 |
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Interest payable and similar expenses |
( |
( |
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Profit before tax |
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Tax on profit |
( |
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Profit for the financial year/period |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
March Foods Ltd
(Registration number: 06801592)
Balance Sheet as at 31 May 2025
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Note |
2025 |
2024 |
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Fixed assets |
|||
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Tangible assets |
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Current assets |
|||
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
|||
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Share Capital |
64,213 |
64,213 |
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Share premium reserve |
31,016 |
31,016 |
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Capital redemption reserve |
7,525 |
7,525 |
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Retained earnings |
2,351,829 |
2,026,163 |
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Shareholders' funds |
2,454,583 |
2,128,917 |
Approved and authorised by the
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March Foods Ltd
Statement of Changes in Equity for the Year Ended 31 May 2025
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Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
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At 1 June 2024 |
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Profit for the year |
- |
- |
- |
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At 31 May 2025 |
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Share capital |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
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At 1 January 2023 |
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- |
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Profit for the year |
- |
- |
- |
- |
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Dividends |
- |
- |
- |
- |
( |
( |
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New share capital subscribed |
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- |
- |
- |
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Other movements on reserves |
- |
- |
- |
(217,715) |
217,715 |
- |
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At 31 May 2024 |
64,213 |
31,016 |
7,525 |
- |
2,026,163 |
2,128,917 |
March Foods Ltd
Statement of Cash Flows for the Year Ended 31 May 2025
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Note |
2025 |
2024 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation |
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Loss on disposal of tangible assets |
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Finance costs |
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Income tax expense |
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( |
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Working capital adjustments |
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Decrease/(increase) in stocks |
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( |
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Decrease/(increase) in trade debtors |
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( |
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(Decrease)/increase in trade creditors |
( |
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Cash generated from operations |
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Income taxes (paid)/received |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
|||
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Acquisitions of tangible assets |
( |
( |
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Cash flows from financing activities |
|||
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Interest paid |
( |
( |
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Proceeds from issue of ordinary shares, net of issue costs |
- |
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Proceeds from bank borrowing draw downs |
- |
( |
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Payments to finance lease creditors |
|
( |
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Dividends paid |
- |
( |
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Net cash flows from/(used in) financing activities |
( |
( |
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Net (decrease)/increase in cash and cash equivalents |
( |
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Cash and cash equivalents at 1 June/1 January |
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|
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Cash and cash equivalents at 31 May |
76,203 |
164,554 |
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March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The business address of the company is different from its registered address as :
7 Martin Avenue
March
Cambridgeshire
PE15 0AY
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
The financial statements are prepared in sterling which is the functional currency of the company.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Disclosure of long or short period
Due to the extended reporting period of 17 months, the comparative figures presented in the financial statements for the previous period cover a longer timeframe than the current year figures, which is for a 12 month. Consequently, the financial results for the current period may not be directly comparable to those of the previous period.
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Fixed assets were revalued at the transition date 1st January 2014 however, the assets continue to be held at historical cost. The revaluation is a diclosure made for informative purposes to the users of the financial statements and has no impact on the accounts.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value, and is credited or charged to profit and loss.
Depreciation is provided to write off each assets over its estimated useful life. Fixed assets were revalued at the transition date 1 January 2014. The rates of depreciation were revalued and fixed assets are now written off between 3 years to 19 years on cost.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
Related parties
For the purposes of these financial statements, a party is considered to be related to the Company if:
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company;
(ii) the Company and the party are subject to common control;
(iii) the party is an associate of the Company or a joint venture in which the Company is a venturer;
(iv) the party is a member of key management personnel of the Company or the Company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company.
(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.
Hire purchase and leasing commitments
Assets obtained under the hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are drepreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimates useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision
affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Useful lives of property, plant and equipment:
Depreciation is provided to write down the assets to their residual values over their estimated useful lives as set out in the Company's accounting policy. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives shorten then depreciation charges in the financial statements would increase and carrying amounts of property, plant and equipment would reduce accordingly. The carrying amount of property, plant and equipment by each class is included in note 10 and details of the useful lives are included within the accounting policy.
Carrying value of Receivables:
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other receivables, management considers factors including current market and industry conditions and historical experience.
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Turnover |
|
Note |
31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
United Kingdom |
9,323,745 |
11,407,530 |
|
|
Europe |
1,398,413 |
2,302,830 |
|
|
United States of America |
1,523,663 |
2,074,306 |
|
|
12,245,821 |
15,784,666 |
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Operating profit |
Arrived at after charging/(crediting)
|
Year ended 31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
Depreciation expense |
|
|
|
Foreign exchange gains |
( |
( |
|
Other operating lease |
|
|
|
Loss on disposal of property, plant and equipment |
|
|
|
Interest payable and similar expenses |
|
Year ended 31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
Year ended 31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Key management remuneration |
The remuneration for the year for key management (including directors' remuneration), was as follows:
|
Year ended 31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
145,397 |
535,336 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
Year ended 31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
Received or were entitled to receive shares under long term incentive schemes |
- |
|
|
Exercised share options |
- |
|
|
Accruing benefits under money purchase pension scheme |
- |
|
In respect of the highest paid director:
|
Year ended 31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Auditors' remuneration |
|
Year ended 31 May 2025 |
1 January 2023 to 31 May 2024 |
|
|
Audit of the financial statements |
14,404 |
13,689 |
|
|
|
|
|
Tax and other services |
|
|
|
|
|
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Tax on Profit |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
( |
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense/(credit) in the income statement |
|
( |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of
The tax charge for the year/period can be reconciled to the profit and loss account as follow:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
- |
|
Deferred tax expense/(credit) from unrecognised temporary difference from a prior period |
|
( |
|
Tax decrease from effect of exercise of employee share options |
- |
( |
|
Total tax charge/(credit) |
|
( |
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Tangible assets |
|
Fixtures and fittings |
Plant and machinery |
Total |
|
|
Cost |
|||
|
At 1 June 2024 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
( |
|
At 31 May 2025 |
|
|
|
|
Accumulated Depreciation |
|||
|
At 1 June 2024 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
|
At 31 May 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 May 2025 |
|
|
|
|
At 31 May 2024 |
|
|
|
Fixed Assets were revalued by Hickman Shearer Chartered Surveyors at the transition date 1st January 2014. If the assets had not been revalued, the net book value would have been £917,642 (2024: £681,392).
Fixed Assets includes Plant & Machinery stated at a net book value of £ 270,856 (2024: £190,582) subject to Hire Purchase finance.
Further fixed assets include asset purchased under hire purchase scheme stated at a net book value of £ 270,857 (2024 - £ 299,945). Depreciation charged on such class of asset was £ 29,556 .( 2024: £ 40,603).
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Stocks |
|
31 May 2025 |
31 May 2024 |
|
|
Raw materials and consumables |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
The cost of stocks recognised as an expense in the year amounted to £3,866,279 (2024: £5,305,739).
|
Debtors |
|
Current |
Note |
2025 |
2024 |
|
Trade debtors |
|
|
|
|
Amounts owed by related parties |
|
|
|
|
Other debtors |
- |
|
|
|
Prepayments |
|
|
|
|
|
|
|
Creditors |
|
Note |
31 May 2025 |
31 May 2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 June 2024 |
|
|
|
Deferred tax charged to the P&L account |
105,561 |
105,561 |
|
At 31 May 2025 |
|
|
|
|
||
Deferred tax on accelerated Capital Allowances is expected to reverse in future years as accelerated capital allowances reduce.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
64,213 |
|
64,213 |
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Loans and borrowings |
|
31 May 2025 |
31 May 2024 |
|
|
Non-current loans and borrowings |
||
|
HP and finance lease liabilities |
|
|
|
31 May 2025 |
31 May 2024 |
|
|
Current loans and borrowings |
||
|
HP and finance lease liabilities |
|
|
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2025 |
2024 |
|||
|
£ |
£ |
|||
|
Interim dividends of £Nil (2024 - £ |
- |
204,680 |
||
The total dividends paid during the year was £Nil (2024 - £204,680).
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Analysis of changes in net debt |
|
At 1 June 2024 |
Financing cash flows |
New finance leases |
At 31 May 2025 |
|
|
Cash and cash equivalents |
||||
|
Cash |
164,554 |
(88,351) |
- |
76,203 |
|
Borrowings |
||||
|
Finance Lease |
126,033 |
- |
97,828 |
223,861 |
|
|
( |
|
|
|
|
|
||||
|
Related Parties Disclosures |
Transactions with Company under common control
During the year sales to related parties were £2,030,682 (2024: £1,550,412).
Balance outstanding from the related party at the year end was £163,110 (2024: £117,729).
Transaction with Parent Company
The parent company manages an overdraft facility as a part of joint agreement with Allica bank. The facility is handled by parent company and interest is allocated on the basis of funds used by March Foods Ltd.
The total amount received from the parent company during the year was £3,913,661 (2024- £2,810,683) and paid during the year was £4,838,770 (2024- £2,247,114). Balance outstanding from/(to) the parent company at the year end was £541,540 (2024- (£383,569)).
The interest rate agreed with Allica bank was Bank of England Base Rate plus 3.75%. During the year the interest charge of £160,717 was paid by March Foods Ltd to the parent company for the use of the loan facility from Allica Bank.
Transactions with directors
Dividends paid to directors during the year totalled £Nil (2024: £204,680)
The directors of the company had no other material transactions with the company during the year other than directors' emoluments.
March Foods Ltd
Notes to the Financial Statements for the Year Ended 31 May 2025
|
Ultimate Controlling Party |
During the previous year Delightful Food Group Limited took over the ownership of 100% shares of the company and it is the ultimate controlling party for March Foods Limited.
|
Banking Facilities |
The company operates a standard bank account which does not have an overdraft facility.
24 Charges over the Company’s Assets
The company has a guarantee and debenture as at the year end which is still outstanding at the date of signing the financial statements. Details can be seen on Companies House website in the "charges" section.
25 Event after the reporting date
There are no matters to report as post balance sheet events.