REGISTERED NUMBER: 03771493 (England and Wales)

Financial Statements for the Year Ended 31 December 2024

for

Quality Kernels Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J C Petrow

J M Warburton

REGISTERED OFFICE:

Spitalfields House

Phoenix Road

Haverhill

CB9 7AE

REGISTERED NUMBER:

03771493 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

BANKERS:

Barclays Bank plc

PO Box 299

Birmingham

B1 3PF

FIXED ASSETS

Tangible assets

4

1,732,473

2,053,235

CURRENT ASSETS

Stocks

1,079,048

1,635,992

Debtors

5

5,505,623

4,504,738

Cash at bank

467,297

266,664

7,051,968

6,407,394

CREDITORS

Amounts falling due within one year

6

8,034,069

6,923,076

NET CURRENT LIABILITIES

(982,101

)

(515,682

)

TOTAL ASSETS LESS CURRENT LIABILITIES

750,372

1,537,553

CREDITORS

Amounts falling due after more than one year

7

436,062

500,657

NET ASSETS

314,310

1,036,896

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

314,210

1,036,796

314,310

1,036,896

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 24 December 2025 and were signed on its behalf by:

J C Petrow - Director

1.	STATUTORY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Plant and machinery etc

-

33% on cost and 20% on cost

Stocks

Stocks and work in progress are valued at lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Cost is calculated using first in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

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

Hire purchase and leasing commitments

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

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company QK will continue operating for at least 12 months from the date of approval of these financial statements. QK incurred a loss for the year and reserves have reduced accordingly. Without the continued financial support of the ultimate beneficial owner and the restructuring which is being implemented the company would continue to incur further losses. The parent company therefore agreed to a restructuring of QK which involved management charges and a streamlining of operations and confirmed that it will continue to provide financial support to QK to enable it to meet its obligations as they fall due for a period of at least 12 months from the date of signing of the financial statements.

During 2025 to date, the restructuring and operational efficiency improvements have evidenced a significant turnaround with the monthly company financial performance turning positive and a modest profit is currently forecast for the year with further improvements to come.

In view of this, and considering the changes which are being implemented within the company, the directors are confident that the company has adequate resources and the management team in place to operate profitably in the future and have therefore prepared the financial statements on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2023 - NIL).

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2024

335,079

4,170,216

4,505,295

Additions

-

570

570

At 31 December 2024

335,079

4,170,786

4,505,865

DEPRECIATION

At 1 January 2024

279,576

2,172,484

2,452,060

Charge for year

29,036

292,296

321,332

At 31 December 2024

308,612

2,464,780

2,773,392

NET BOOK VALUE

At 31 December 2024

26,467

1,706,006

1,732,473

At 31 December 2023

55,503

1,997,732

2,053,235

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade debtors

1,999,363

1,637,428

Amounts owed by group undertakings

3,407,358

2,717,950

Other debtors

98,902

149,360

5,505,623

4,504,738

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade creditors

863,291

841,931

Amounts owed to group undertakings

4,737,982

4,725,751

Other creditors

2,432,796

1,355,394

8,034,069

6,923,076

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.24

31.12.23

£

£

Other creditors

436,062

500,657

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We draw attention to the going concern accounting policy in note 2 of these financial statements, which refers to the funding situation of the company. Our opinion is not modified in respect of this matter.

Mark Stothard BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited