Company registration number 07047795 (England and Wales)
MBJSC PRODUCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
MBJSC PRODUCE LIMITED
COMPANY INFORMATION
Directors
Mrs M D Blair-Cornwell
Mr S E Cornwell
Secretary
Mrs M D Blair-Cornwell
Company number
07047795
Registered office
Tylers Cross Nursery
Broadley Common
Nazeing
EN9 2DH
Auditor
Tag Assurance Services
8 Pendeford Place
Pendeford Business Park
Wobaston Road
Wolverhampton
WV9 5HD
MBJSC PRODUCE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
MBJSC PRODUCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Principal activities

The principal activity of the company continued to be that of packaging and selling horticultural produce, this includes the growing of crops to help supply customers.

MBJSC PRODUCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Review of the business

During the year ended 31st October 2024 MBJSC Produce Limited, had to continue to navigate high costs surrounding administration and direct costs due to inflation, energy costs did start to slowly reduce during the year which was important for continued operations. The continued lack of produce availability in the country which continued to drive up purchase prices, and with supermarkets still making it difficult to renegotiate selling prices, made it very difficult to meet the profit margins required for the company to prosper and recover from prior year losses.

PRINCIPAL RISKS AND UNCERTAINTIES

The primary risks to the current business are sourcing produce at a price which enables the business to sell to supermarkets at the required profit margins. We have mitigated the challenges thus far to reduce the losses; however more talks have been ongoing with our customers to improve terms of contract so we can continue to supply in the future. Now this has been reported nationwide, we hope that the supermarkets will react to what is going on in the marketplace, thus allowing the required margin to be made. We strive to have solid working relationships with our suppliers, and another consideration is continuity of supply of our imports, which, again to date, has been effective.

FINANCIAL INSTRUMENTS- FINANCIAL RISK MANAGEMENT: RISKS, OBJECTIVES AND POLICIES

The company’s financial assets comprise of trade debtors, fixed assets and investment properties. The group has assessed credit risk as low due to the level of assets held by the holding company, and with regard to its trade debtors their strong credit ratings, and the low level of experienced loss by the company over the years. The company is exposed to price risk through both movements in market prices and due to exposure to movements in exchange rates. The group permits but does not require hedging instruments to be used. The company also mitigates price risk by ensuring that their suppliers are competitive and by ensuring that sales contracts, wherever possible, have flexibility allowing for increases in cost to be passed onto clients. The group is financed through a bank loan, an invoice discount facility and working capital. The invoice discounting facility has enough headroom to ensure that the company does not have a significant cash flow or liquidity risk. The groups borrowings are based on a base plus 2.75% model for the next 2 years. Whilst there is exposure to rises in interest rates the group does not consider this to be a material risk.

KEY PERFORMANCE INDICATORS

We monitor our performance by measuring and tracking key performance indicators (KPI's) that we believe are important to our continued success. In this regard, we principally monitor through the trading company, output and margin, with separate considerations of each in connection with winter and summer business. Budgeted turnover at the margins set will generate profits essential to remain viable, provided of course costs are controlled, the most significant being labour. In busy times agency labour is essential but expensive, and it is necessary to constantly strive to set the right balance between permanently employed staff and the agency back-up. This is monitored closely and acted upon. The company prepares daily records of throughput and margin onto a weekly guide of contribution to overheads and profit, and this is invaluable in operating in a market where prices fluctuate. The KPI's will give an ongoing indication of performance in achieving our budgeted results. The target for the company each year is a 6% Gross Profit Margin (GPM) based on £25,000,000 turnover. During the year the company had a 6.83% (2023 6.11%) GPM with a decrease in turnover to £21.2m (2023 £26.1m).

The various lines supplied are constantly reviewed for profitability, as are the suppliers, new sources constantly being sought to allow our KPI's to be met in the future. The immediate focus is always to concentrate on increasing margins and levels of business with our current clients, whilst remaining alive to new opportunities to serve others. We enjoy good working relationships with our customers and suppliers, several of whom we have known, and worked with, for many years. Continuity of supply at the specified quality is key, and we continue to seek strong, solid working relationships with customers and suppliers alike. Future development is as much about maintaining what we have by the quality of service, and this will open doors, and we feel well placed to continue to achieve this.

MBJSC PRODUCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

On behalf of the board

Mrs M D Blair-Cornwell
Director
10 February 2026
MBJSC PRODUCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mrs M D Blair-Cornwell
Mr S E Cornwell
Statement of disclosure to auditor

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.

On behalf of the board
Mrs M D Blair-Cornwell
Director
10 February 2026
MBJSC PRODUCE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -

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.

MBJSC PRODUCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MBJSC PRODUCE LIMITED
- 6 -

Opinion

We were engaged to audit the financial statements of MBJSC Produce Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, 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, except for the effects of the matters described in the Basis for Qualified Opinion section, the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 October 2024 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 qualified 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 group and parent 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 qualified opinion. We were not appointed as auditor of the company until after 31 October 2024 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 October 2024, which are included in the balance sheet at £1,267,665 by using other audit procedures. We also have concerns around the opening stock figure as we were unable to satisfy ourselves that the figure of £753,823 was adequately audited in the previous year. Consequently, we were unable to determine whether any adjustment to these amounts were necessary. We were unable to satisfy ourselves of the accuracy and items within the accruals figure of £110,680, included in the financial statements. Consequently, we were unable to determine whether any adjustment to the amount was necessary.

Material uncertainty 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.

We draw attention to N ote 1.2 in the financial statements which indicated the company achieved a net profit of £150,453 during the year ended 31 October 2024 and, as of that date, total liabilities exceeded total assets by £951,518. The directors are confident that the company will continue to be profitable over the coming year and will continue to reduce the deficit on its balance sheet. The current financial position of the company indicates that a material uncertainty exists, which may cast doubt over the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

MBJSC PRODUCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MBJSC PRODUCE LIMITED (CONTINUED)
- 7 -

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

Notwithstanding our disclaimer of an opinion on the financial statements, in our opinion, based on the work undertaken in the course of our audit:

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

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

MBJSC PRODUCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MBJSC PRODUCE LIMITED (CONTINUED)
- 8 -

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

We review financial statement disclosures and undertake testing to supporting documentation to assess compliance with applicable laws and regulations.

We perform audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business.

We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

We enquire of management around actual and potential litigation and claims.

We conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the union's ability to continue as a going concern.

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.

Shaun Philpott FCA (Senior Statutory Auditor)
For and on behalf of Tag Assurance Services, Statutory Auditor
Accountants
8 Pendeford Place
Pendeford Business Park
Wobaston Road
Wolverhampton
WV9 5HD
10 February 2026
MBJSC PRODUCE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
21,236,253
26,081,990
Cost of sales
(19,786,682)
(24,488,329)
Gross profit
1,449,571
1,593,661
Administrative expenses
(1,214,587)
(1,245,585)
Other operating income
39,811
50,593
Operating profit
4
274,795
398,669
Interest payable and similar expenses
8
(124,342)
(151,291)
Profit before taxation
150,453
247,378
Tax on profit
9
-
0
156,658
Profit for the financial year
150,453
404,036

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MBJSC PRODUCE LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Current assets
Stocks
11
1,267,665
753,823
Debtors
12
2,326,674
3,725,317
Cash at bank and in hand
23,847
71,700
3,618,186
4,550,840
Creditors: amounts falling due within one year
13
(4,569,704)
(5,535,625)
Net current liabilities
(951,518)
(984,785)
Creditors: amounts falling due after more than one year
14
-
0
(117,186)
Net liabilities
(951,518)
(1,101,971)
Capital and reserves
Called up share capital
18
1
1
Profit and loss reserves
(951,519)
(1,101,972)
Total equity
(951,518)
(1,101,971)
The financial statements were approved by the board of directors and authorised for issue on 10 February 2026 and are signed on its behalf by:
Mrs M D Blair-Cornwell
Director
Company registration number 07047795 (England and Wales)
MBJSC PRODUCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2022
1
(1,506,008)
(1,506,007)
Year ended 31 October 2023:
Profit and total comprehensive income
-
404,036
404,036
Balance at 31 October 2023
1
(1,101,972)
(1,101,971)
Year ended 31 October 2024:
Profit and total comprehensive income
-
150,453
150,453
Balance at 31 October 2024
1
(951,519)
(951,518)
MBJSC PRODUCE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
673,169
368,142
Interest paid
(124,342)
(151,291)
Income taxes refunded
-
0
353,928
Net cash inflow from operating activities
548,827
570,779
Financing activities
Repayment of bank loans and overdrafts
(596,680)
(607,688)
Net cash used in financing activities
(596,680)
(607,688)
Net decrease in cash and cash equivalents
(47,853)
(36,909)
Cash and cash equivalents at beginning of year
71,700
108,609
Cash and cash equivalents at end of year
23,847
71,700
MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
1
Accounting policies
Company information

MBJSC Produce Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tylers Cross Nursery, Broadley Common, Nazeing, EN9 2DH.

1.1
Basis of preparation

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 a mounts 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.

1.2
Going concern

The financial statements are prepared on a going concern basis.true

The company achieved a net profit of £150,453 during the year ended 31 October 2024 and, as of that date, total liabilities exceeded total assets by £951,518. The directors are committed to the future success of the company and have returned the company to profitability in the last 2 years and profits have been sustained since the year-end that have continued to reduce the net labilities position of the company. The directors believe the company has adequate funding through the headroom in the subsidiary’s invoice discounting arrangement and via other available financing. In the next 12 months, the directors anticipate profits will continue on the company’s trading activities and, therefore, believe that the going concern basis is appropriate.

1.3
Revenue

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Stocks

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.

1.6
Cash and cash equivalents

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.

1.7
Financial instruments

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 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 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

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.

MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of 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 deducting all of its liabilities.

Basic financial 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 paymen ts 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. A m ounts 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.

Other financial liabilities

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 s ubsequently 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 th r ough 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.

MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

1.8
Equity instruments

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.

1.9
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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

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 profit and loss account, 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.

1.10
Employee benefits

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.

1.11
Retirement benefits

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

1.12
Leases
As lessee

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 lease s asset are consumed.

MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
As lessor

When the company acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the company allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
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.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
UK Sales
21,236,253
26,081,990
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(31,815)
4,782
Operating lease charges
113,000
176,811
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,500
7,000
MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
6
Employees

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

2024
2023
Number
Number
Office staff
11
10
Packhouse and nursery staff
46
56
Directors
2
2
Total
59
68

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,520,028
1,631,155
Social security costs
139,832
147,964
Pension costs
30,176
30,892
1,690,036
1,810,011
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
13,500
13,358
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost
Interest on bank overdrafts and loans
119,714
151,291
Other finance costs
Other interest
4,628
-
0
124,342
151,291
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
(42)
MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
-
0
(156,616)
Total tax charge/(credit)
-
0
(156,658)

The actual charge/(credit) 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:

2024
2023
£
£
Profit before taxation
150,453
247,378
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
37,613
61,845
Tax effect of expenses that are not deductible in determining taxable profit
2,448
3,174
Tax effect of utilisation of tax losses not previously recognised
-
0
(73,221)
Unutilised tax losses carried forward
(40,061)
-
0
Adjustments in respect of prior years
-
0
(148,456)
Taxation charge/(credit) for the year
-
(156,658)
10
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
152,911
Amortisation and impairment
At 1 November 2023 and 31 October 2024
152,911
Carrying amount
At 31 October 2024
-
0
At 31 October 2023
-
0
11
Stocks
2024
2023
£
£
Stocks and growing crops
1,267,665
753,823
MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,153,206
2,345,360
Gross amounts owed by contract customers
34,753
34,753
Amounts owed by group undertakings
589,866
792,025
Other debtors
385,388
435,690
Prepayments and accrued income
163,461
117,489
2,326,674
3,725,317
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
1,450,132
1,929,626
Trade creditors
2,882,183
3,184,863
Taxation and social security
111,712
38,737
Other creditors
14,997
229,119
Accruals and deferred income
110,680
153,280
4,569,704
5,535,625
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
-
0
117,186
15
Loans and overdrafts
2024
2023
£
£
Bank loans
1,450,132
2,046,812
Payable within one year
1,450,132
1,929,626
Payable after one year
-
0
117,186

The short term loans are secured by fixed and floating charges over the company's assets.

The long term borrowings are secured by fixed charges over the company's assets.

MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
16
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Tax losses
265,527
265,527
There were no deferred tax movements in the year.

The deferred tax liability set out above is expected to reverse within the foreseeable future and relates to carried forward tax losses that will be offset against future profits. The deferred tax asset is included within the Other Debtors figure in Note 12.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,176
30,892

The company operates 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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1
1
1
1
19
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
19
Operating lease commitments
(Continued)
- 22 -

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within 1 year
13,250
2,984
Years 2-5
26,500
39,750
After 5 years
618,516
621,500
658,266
664,234
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

MBJSC Properties Limited is a company under common control. At 31 October 2024 the company was owed £NIL (31 October 2023 - £12,412).

21
Ultimate controlling party

The company's immediate and ultimate parent company is MBJSC (Holdings) Limited, a company incorporated in England. The parent company produces consolidated financial statements that can be requested from the company's registered office.

22
Cash generated from operations
2024
2023
£
£
Profit after taxation
150,453
404,036
Adjustments for:
Taxation charged/(credited)
-
0
(156,658)
Finance costs
124,342
151,291
Movements in working capital:
Increase in stocks
(513,842)
(12,338)
Decrease in debtors
1,398,643
542,345
Decrease in creditors
(486,427)
(560,534)
Cash generated from operations
673,169
368,142
MBJSC PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
23
Analysis of changes in net debt
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
71,700
(47,853)
23,847
Borrowings excluding overdrafts
(2,046,812)
596,680
(1,450,132)
(1,975,112)
548,827
(1,426,285)
MBJSC PRODUCE LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2024
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