1.
General Information
Kirtons Bakery Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
06402164
. The registered office is 11-13 Britannia Street, Leicester, Leicestershire, LE1 3LE.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2.
Going Concern Disclosure
The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company is expected to generate positive cash flows for the foreseeable future and should therefore be able to operate within the current level of working capital.
On the basis of their assessment of the company's financial position, the directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
2.4.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Leasehold |
|
| Plant & Machinery |
|
| Motor Vehicles |
|
Assets costing less than £250 are treated as revenue expenditure and not capitalised.
2.5.
Leasing and Hire Purchase Contracts
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
2.6.
Stocks and Work in Progress
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.7.
Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
Kirtons Bakery Limited
Notes to the Financial Statements (continued)
For The Year Ended 12 April 2025
2.8.
Financial Instruments
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
2.9.
Taxation
Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
Kirtons Bakery Limited
Notes to the Financial Statements (continued)
For The Year Ended 12 April 2025
2.10.
Pensions
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
2.11.
Judgments In Applying Accounting Policies And Key Sources Of Estimation Uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
Depreciation of tangible fixed assets
Determining the appropriate rate of depreciation of tangible fixed assets requires an estimation of the useful economic life and ultimate net realisable value. The useful economic life is determined to be the period during which each asset will generate positive cash flows for the company.
Stock valuation
Stock is valued at the lower of cost and net realisable value. Cost is determined on a first in, first out basis.
Provision is made to reduce the value of stock for slow obsolete stock. Raw materials are deemed to be obsolete when the time remaining until their use-by date is such that the company’s quality standards could not be guaranteed if products were made using these raw materials. Finished goods are deemed to be obsolete when their best-before date is reached. Obsolete stocks are fully written off.
3.
Turnover
All turnover arose within the United Kingdom.
4.
Operating Profit
The operating profit is stated after charging:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bad debts | 20,000 | 36,241 | |
| Operating lease rentals |
|
|
|
| Depreciation of tangible fixed assets |
|
|
|
5.
Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Audit Services | |||
| Audit of the company's financial statements |
|
|
|
6.
Staff Costs
Staff costs, including directors' remuneration, were as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other pension costs |
|
|
|
|
|
|
||
Kirtons Bakery Limited
Notes to the Financial Statements (continued)
For The Year Ended 12 April 2025
7.
Average Number of Employees
Average number of employees, including directors, during the year was: 147 (2024: 158)
8.
Directors' remuneration
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
|
|
|
||
9.
Interest Receivable and Similar Income
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank interest receivable |
|
|
|
| Other interest receivable | 17,426 | - | |
| 64,602 | 24,005 | ||
10.
Tax on Profit
|
The tax charge on the profit for the year was as follows:
|
|||||
| Tax Rate | 2025 | 2024 | |||
|---|---|---|---|---|---|
| 2025 | 2024 | £ | £ | ||
| Current tax | |||||
| UK Corporation Tax | 25.0% | 25.0% |
|
|
|
| Prior period adjustment |
( |
( |
|||
|
|
|
||||
| Deferred Tax | |||||
| Deferred taxation |
( |
|
|||
| Total tax charge for the period |
|
|
|||
|
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
|
|||||
| 2025 | 2024 | ||||
| £ | £ | ||||
| Profit before tax | 1,832,483 | 948,618 | |||
| Tax on profit at 25% (UK standard rate) |
|
|
|||
| Goodwill/depreciation not allowed for tax |
|
|
|||
| Expenses not deductible for tax purposes |
|
|
|||
| Capital allowances |
( |
( |
|||
| Short term timing differences |
( |
|
|||
| Prior period adjustment |
( |
( |
|||
| Total tax charge for the period | 327,813 | 27,071 | |||
|
The prior period adjustment relates to research and development claims that were not included within the original tax calculation for the relevant year.
|
|||||
Kirtons Bakery Limited
Notes to the Financial Statements (continued)
For The Year Ended 12 April 2025
11.
Tangible Assets
| Land & Property | ||||
|---|---|---|---|---|
| Leasehold | Plant & Machinery | Motor Vehicles | Total | |
| £ | £ | £ | £ | |
| Cost | ||||
| As at 14 April 2024 |
|
|
|
|
| Additions |
|
|
|
|
| As at 12 April 2025 |
|
|
|
|
| Depreciation | ||||
| As at 14 April 2024 |
|
|
|
|
| Provided during the period |
|
|
|
|
| As at 12 April 2025 |
|
|
|
|
| Net Book Value | ||||
| As at 12 April 2025 |
|
|
|
|
| As at 14 April 2024 |
|
|
|
|
12.
Stocks
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Stock |
|
|
|
13.
Debtors
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Prepayments and accrued income |
|
|
|
| VAT |
|
|
|
|
|
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||
14.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
|
|
|
| Other creditors | 118,368 | 47,809 | |
| Corporation tax |
|
|
|
| Taxation and social security | 158,784 | 119,498 | |
| Accruals and deferred income | 366,827 | 216,146 | |
|
|
|
||
Kirtons Bakery Limited
Notes to the Financial Statements (continued)
For The Year Ended 12 April 2025
15.
Deferred Taxation
The provision for deferred tax is made up as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Accelerated capital allowances |
|
|
|
16.
Provisions for Liabilities
| Deferred Tax | Total | |
|---|---|---|
| £ | £ | |
| As at 14 April 2024 |
|
93,528 |
| Utilised |
( |
(7,925) |
| Balance at 12 April 2025 |
|
85,603 |
18.
Financial Instruments
The company has the following financial instruments:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Financial assets | |||
| Financial assets measured at fair value through profit and loss | 4,578,326 | 2,164,526 | |
| Financial assets that are debt Instruments measured at amortised cost | 2,824,442 | 2,355,671 | |
| Financial liabilities | |||
| Financial liabilities measured at amortised cost | 2,472,056 | 1,587,358 | |
Financial assets measured at fair value through profit and loss comprise cash and bank balances.
Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors.
Financial liabilities measure at amortised cost comprise trade and other creditors and accruals.
19.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
|
|
| Later than one year and not later than five years |
|
|
|
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|
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Kirtons Bakery Limited
Notes to the Financial Statements (continued)
For The Year Ended 12 April 2025
20.
Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to the profit and loss account in respect of defined contribution schemes was £55,169 (2024: £45,956).
At the balance sheet date contributions of £33,693 (2024: £34,226) were due to the fund and are included in other creditors.
21.
Dividends
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| On equity shares: | |||
| Interim dividend paid |
|
|
|
|
2025
|
2024
|
||
|
Interim dividends paid
|
£
|
£
|
|
|
Ordinary A Shares
|
48,000
|
-
|
|
|
Ordinary B Shares
|
48,000
|
-
|
|
|
Ordinary C Shares
|
-
|
-
|
|
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|
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|
96,000
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|
-
|
22.
Reserves
Capital Redemption reserve
This reserve represent issued share capital that was repurchased by the company and subsequently cancelled in previous years. This reserve is not distributable
Revaluation reserve
This reserve was established to recognise all gains and losses arsing from revaluation of plant and machinery in prior years, the company no longer revalues its plant and machinery on adoption of FRS 102. All movements through this reserve will be as a result of adjustments for deprecation, deferred tax and disposals or impairments of previously revalued assets.
Profit and loss account
Total comprehensive income, after dividends and reserve transfers as described above, is retained and carried forward in the profit and loss account.