The directors present the strategic report for the year ended 31 March 2025.

The company continued to develop and manufacture high quality fresh food products for leading retailers in the UK and Ireland. Products are developed and sold both for its customers’ own brands and under Avondale Foods own brand of Country Kitchen. The company’s product range includes side salads and other vegetable accompaniments, oat drinks, porridge, sauces and noodles.

The directors are pleased to report that, for the financial year to 31 March 2025, total sales increased by £10,825,141, an increase of 11.8% on the previous financial year. This increase was primarily driven by increased sales volumes and continues the sustained growth of the company as reflected in prior year financial statements. Growth has been both organic across all areas, but also from investing in two new categories for the business. Operationally, the company continues to take advantage of the alternative milk facility, not only to manufacture a final product, but also as an ingredient to supply into the rest of the business.

With much instability in the supply base, especially with fresh produce, plans have been implemented to improve resilience going forward.

The company continued to make significant investments in the year in capital to support the company’s productions facilities.

The company’s profit for the financial year is £5,950,149 (2024 - £5,622,173) and had net assets at 31 March 2025 of £42,757,775 (2024 - £37,657,626).

The directors are pleased with the performance of the company during the year and the financial position of the company at the year end.

Performance in the sector is affected by general economic conditions and specific sectoral factors. The directors consider that the factors and risks which can influence the company's performance and results are as follows:

• Pressure to reduce or maintain existing prices and margins by customers, especially given trading uncertainty surrounding the UK and Europe.

• Maintenance of supply of the highest quality ingredients during seasonal changes and varying climate conditions.

• Higher operating costs.

• Currency fluctuations.

Interest rate risk

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances, all of which earn interest. Interest bearing liabilities qualify as basic financial instruments and relate to bank overdrafts on which the company pays variable rates of interest. Given recent changes in interest rates by the Bank of England, there is some uncertainty in relation to the future interest charges on these overdraft facilities.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before contract terms are agreed.

Liquidity risk

The company maintains a level of liquid resources that is designed to ensure the company has sufficient available funds for operations and any planned expansions and developments in the future.

Raw materials

A significant portion of the company's direct inputs relate to the ingredients of its food products. Although the board monitors these carefully, fluctuations in availability and cost are largely outside the company's control.

Food hygiene and safety

Food hygiene and safety is critical to the company. Maintaining excellence in food hygiene and safety at all stages of manufacturing and distribution is of the utmost importance. Systems are in place to ensure highest standards are achieved.

The directors are pleased to report that turnover has continued to improve in the year ended 31 March 2025 with the key performance indicators for the period being met. The company has achieved its growth targets in organic growth and also growth in new product areas, based off the recently opened alternative milk facility.

The company continues to develop its production facilities and production lines. During the year the the key focus of the company has been building increased capacity across the business to allow for its continued growth.

The company's performance indicators are as follows:

The directors are committed to the long term success and profitability of the company, with a combination of product development, product efficiency and building key customer relationships.

Performance and efficiency is also measured by monitoring and reporting on energy consumption from electricity, gas and other fuel. In the current year total energy consumption was 15.7 million kWh (2024 - 14.2 million kWh).

Principal decisions in the year

This financial year has seen continued investment in its production site, split primarily between capacity increase, innovation and the facility. This includes upgrades to several of the refrigeration units moving to lower GWP. As well as completing the move to a fully electric fleet of forklift trucks, the electricity supply is 100% verified from renewable resources.

The directors recognise their duty to act, in good faith, in order to promote the success of the company for the benefit of its members as a whole, and in doing so, having due regard (amongst other matters) to:

• the likely consequence of any decision in the long term

• the interests of the company’s employees

• the need to foster the company’s business relationships with suppliers, customers and others

• the impact of the company’s operations on the community and the environment

• the desirability of the company maintaining a reputation for high standards of business conduct

• the need to act fairly as between members of the company.

The company's key stakeholders are considered to be:

• investors

• employees

• customers

• suppliers

The directors strive to understand the interests of its stakeholders and the impact of the company's decisions on them, and do this by continued direct engagement.

Investors

The directors recognise the importance of shareholder support and current debt funding in achieving the company's capital investment programme, which has continued in the year to 31 March 2025. All shareholders are encouraged to engage in the key decision making process of the board.

Employees

The company's employees play an important role in the success of Avondale Foods. As stated in the directors' report, the involvement of employees in the company's performance is actively encouraged by the provision of relevant information. Employees are kept informed of performance and other financial and economic factors affecting the company.

Customers and suppliers

Strong, mutually beneficial relationships with both customers and suppliers is a key component of the company's continued success. The directors continually engage with customers and suppliers to manage expectations and deliverables.

Other key areas

The directors are cognisant of the company's impact on both the local community and the wider environment in their decision making. Avondale Foods is a key employer in the local area and the directors promote engagement with the wider community and support activities within the community. Reducing the impact of the company's operations on the environment has played, and will continue to play, an important role in the company's strategy over the coming years as reducing CO2 emissions becomes a key focus.

The company's reputation in all aspects of its operations is of the utmost importance to its success. Technical excellence and integrity is central to the company's manufacture of safe, innovative food products. This is central to the directors decision making in their continuing development of the company's products, production facilities and ethos.

In making key decisions the directors explicitly consider the likely consequences for the company in the long term to help ensure the company's long term profitability and sustainability.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be that of manufacturing food products for major supermarkets and retailers.

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £850,000. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company continues to carry out research and development activities on an ongoing basis in respect of its product range with related expenditure included in wages and salaries, software and utilities costs.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company continues to maintain arrangements aimed at ensuring adequate engagement with employees. The company ensures that there are monthly staff committee meetings, communication boards, monthly newsletters and project working groups aimed at ensuring that employees are kept informed on all information that is relevant to them as well as allowing staff numerous ways of communication and expressing their views. The company encourages staff involvement in terms of company performance by having an employee of the month. Hardworking enthusiastic employees are rewarded for there efforts at the end of each month. Employees have also been involved in some decision making during the year. Votes were carried out during committee meetings and the results of such votes have aided in the directors decisions decided upon during the year.

The strategic report discloses other matters to be disclosed in respect of the company's business relationships with customers, suppliers and others.

Subsequent to the year end, the company acquired a commercial property to support its ongoing operational requirements. The company has also identified the potential need for additional production capacity and may incur further capital expenditure in this regard. These investments are expected to support the company’s continued growth.

The company's energy consumption relating to electricity, the combustion of gas and fuel was 15.7 million kWh (electricity 6.13 million kWh, gas 9.33 million kWh, transport fuel 257k kWh). The company's emissions in tonnes of carbon dioxide equivalent was 2.5k of which 2k related to combustion of gas, 0.3k related to the purchase of electricity and 0.006k related to fuel for the purposes of transport.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per tonne of product produced. The intensity measurement ratio is 0.007tCO2.

The company has quantified and reported their organisational greenhouse gas (GHG) emissions according to the GHG Reporting Protocol. Energy use data has been collated and converted into Carbon Dioxide Equivalent (CO2e) using the most up to date (2019) HM Government Environmental Reporting Guidelines along with the 2023 UK Government Conversion Factors for company reporting purposes.

The directors are responsible 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:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Avondale Foods (Craigavon) Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 March 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'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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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.

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.

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.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

• The nature of the industry and sector, control environment and business performance, including the company’s remuneration policies for directors, bonus levels and performance targets, if any;

• Results of our enquiries of management about their own identification and assessment of the risks of irregularities;

• Any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:

  • Identifying, evaluating and complying with laws and regulations and whether they were aware of any instance 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 of fraud or non-compliance with laws and regulations;

• The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a 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 Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

Our procedures to respond to the risks identified included the following:

• 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;

• Enquiring of management concerning actual and potential litigation and claims;

• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• Reading minutes of meetings of those charged with governance and reviewing correspondence with tax authorities; and

• In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

The income statement has been prepared on the basis that all operations are continuing operations.

Avondale Foods (Craigavon) Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is Dukestown Lane, Lurgan, Craigavon, Co Armagh, BT66 8TB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet 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.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The directors used external professional advice to support the year end provisions.

At each balance sheet date the company's stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The assessment of the selling price of such stock involves some estimation uncertainty.

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

The directors consider that the company operates one class of business and within one geographical market, that being the United Kingdom and Ireland.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The value of land that has not been depreciated amounts to £358,297 (2024 - £358,297).

The net book value of assets held under finance lease amounts to £184,710 (2024 - £Nil).

Bank borrowings are secured by a legal mortgage over the property at Dukestown Lane. There is also a floating charge and a fixed charge over book debts of the company.

Finance lease payments represent amounts payable by the company for items of plant and machinery which have been purchased under finance lease agreements and capitalised during the year. Finance leases are secured on the assets acquired.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company contributes to a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Capital redemption reserve

This reserve records the nominal value of shares purchased by the company.

Profit and loss reserve

This reserve records retained earnings and any accumulated losses.

Amounts contracted for but not provided in the financial statements:

After the year end the company completed the purchase of commercial property for consideration of approximately £1.2m. This transaction has not been reflected in these financial statements as the purchase took place after the reporting date.

During the year, the company purchased machinery and parts amounting to £144,836 (2024 - £185,045), on an arm’s length basis, from a company in which one of Avondale Foods (Craigavon) Limited directors is a shareholder and director. At 31 March 2025, £15,846 (2024 - £4,201) was owing to the related party.

Avondale Foods (Craigavon) Limited also contracts for services with a company that is under common control.  Under the contract, Avondale Foods (Craigavon) Limited incurred expenses of £1,800,000 in the year (2024 - £1,800,000).  At 31 March 2025, £450,000 (2024 - £nil) was owing to the related party.

A director maintained a current account with the company. The balance due to the director at 31 March 2025 amounted to £7,366 (2024 - £7,559). No interest is charged on amounts due to directors.

Key management is considered to be the board of directors. The remuneration paid or payable to key management is disclosed in note 7.