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Malcolm Barnecutt Bakery (Holdings) Limited
Annual Report and Consolidated Financial Statements
Year Ended 30 June 2025

Registration number: 07909189

Malcolm Barnecutt Bakery (Holdings) Limited

Contents

Company Information | 1
Strategic Report | 2
Director's Report | 3
Statement of Director's Responsibilities | 4
Independent Auditor's Report | 5 to 8
Consolidated Profit and Loss Account | 9
Consolidated Balance Sheet | 10
Balance Sheet | 11
Consolidated Statement of Changes in Equity | 12
Statement of Changes in Equity | 13
Consolidated Statement of Cash Flows | 14
Notes to the Financial Statements | 15 to 31

Malcolm Barnecutt Bakery (Holdings) Limited

Company Information

Director | Mr J Barnecutt

Registered office | Unit 5 b/c Normandy Way Bodmin Cornwall PL31 1EU

Auditors | Francis Clark LLP Statutory AuditorMelville Building East Unit 18, 23 Royal William Yard Plymouth Devon PL1 3GW

Malcolm Barnecutt Bakery (Holdings) Limited

Strategic Report

Year Ended 30 June 2025

The director presents his strategic report for the year ended 30 June 2025.

Principal activity

The principal activity of the group is the production and sale of baked goods. The principal activity of the company is that of a holding company.

Fair review of the business

This year we have had fairly strong sales, and development of the production facilities has made us more dynamic and compliant. We expect healthy revenue in the coming year, with a peak anticipated in summer 2026. A shop refit is planned for early 2026 in Liskeard. We are self-funding both expansion and renovation work. However, taxation and wage increases continue to have a negative impact on our business.

The group's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2025 | 2024
Turnover | £'000 | 15,291 | 13,625
Gross Profit | £'000 | 5,265 | 4,754
Gross Profit Margin | % | 34 | 35

Principal risks and uncertainties

In the normal course of business the group could be subject to legal recourse and claims including product liability matters. The group could also be impacted by the loss in trade resulting from a poor food hygiene rating. The group responds to these risks by training of staff in processing and customer service and focusing on the maintenance of high standards of food hygiene.

Approved by the director on 4 February 2026 and signed on its behalf by:

......................................... Mr J Barnecutt Director |  |

Malcolm Barnecutt Bakery (Holdings) Limited

Director's Report

Year Ended 30 June 2025

The director presents his report and the for the year ended 30 June 2025.

Directors of the group

The directors who held office during the year were as follows:

Mr J Barnecutt

Mr M Barnecutt (ceased 12 June 2025)

Financial risk management objectives and policies

In the opinion of the directors, the group's operations are not exposed to any significant financial risks. However, management monitors and takes action to mitigate the group's price, credit and liquidity risk.

Price risk, credit risk and liquidity risk

a) Price risk
The group is at risk of volatility in prices of raw materials such as meat, dairy and fish products. The group mitigates its risk to this volatility by using a number of suppliers.
b) Credit risk
As the majority of sales are for cash, this is not a significant risk. However, the group does actively chase any outstanding debts and regularly monitors credit terms.
c) Liquidity risk
There is a risk that the group could over trade and have insufficient funds available to pay debts as they fall due. This risk is mitigated by the high cash balance maintained by the group.

Disclosure of information to the auditor

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.

Approved by the director on 4 February 2026 and signed on its behalf by:

......................................... Mr J Barnecutt Director |  |

Malcolm Barnecutt Bakery (Holdings) Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

• | select suitable accounting policies and 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Malcolm Barnecutt Bakery (Holdings) Limited

Independent Auditor's Report to the Members of Malcolm Barnecutt Bakery (Holdings) Limited

Opinion

We have audited the financial statements of Malcolm Barnecutt Bakery (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2025 and of the group's profit for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Malcolm Barnecutt Bakery (Holdings) Limited

Independent Auditor's Report to the Members of Malcolm Barnecutt Bakery (Holdings) Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

• | the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

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

• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
• | the parent company 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 the director

As explained more fully in the Statement of Director's Responsibilities set out on page 4, the director is 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 director determines 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 director is responsible for assessing the group’s and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Malcolm Barnecutt Bakery (Holdings) Limited

Independent Auditor's Report to the Members of Malcolm Barnecutt Bakery (Holdings) Limited

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning we obtained an understanding of the legal and regularity framework that is applicable to the group and the industry/sector in which it operates to identify the key laws and regulations affecting the group. As part of our assessment process we discussed with management the laws and regulations applicable to the group, reviewed certification identified online and other communications and considered findings from previous audits.
The key laws and regulations we identified were Food Hygiene (England) Regulations, BRC Global Standard for Food Safety, Health & Safety at Work and General Data Protection Regulations (GDPR). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006 and Corporation Taxes Act 2009 & 2020.
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the group which were contrary to applicable laws and regulations, including fraud.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the group complies with laws and regulations and deal with any reporting issues if they arise.
As part of our audit planning procedures, we assessed the risk of any non-compliance with laws and regulations on the group's ability to continue trading and the risk of material misstatement to the financial statements.
Our procedures involved the following:
- Made enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements.
- Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
- Examined regulatory reports (both internal and external) in relation to the key laws and regulations where such reports had been made during or after the period.
- Reviewed food hygiene ratings awarded to stores and discussions on how compliance is monitored.
- Reviewed the group&apos;s GDPR policy and made enquiries of any breaches in the year.

Malcolm Barnecutt Bakery (Holdings) Limited

Independent Auditor's Report to the Members of Malcolm Barnecutt Bakery (Holdings) Limited

As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the year.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.
In response to the identified risks, as part of our audit work we:
- Reviewed journal entries throughout the year for appropriateness.
- Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
- Undertook specific completeness and cut-off procedures in respect of revenue recognition.
- Undertook year end stock counting procedures.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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.

......................................
James Barrett (Senior Statutory Auditor)
Francis Clark LLP, Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

4 February 2026

Malcolm Barnecutt Bakery (Holdings) Limited

Consolidated Profit and Loss Account

Year Ended 30 June 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 15,291,180 | 13,625,276
Cost of sales |  | (10,025,826) | (8,870,941)
Gross profit |  | 5,265,354 | 4,754,335
Administrative expenses |  | (3,689,758) | (1,835,580)
Other operating income | 4 | 92,640 | 112,918
Operating profit | 5 | 1,668,236 | 3,031,673
Gain on financial assets at fair value through profit and loss |  | 96 | -
Other interest receivable and similar income | 9 | 27,871 | 56,284
Interest payable and similar expenses | 10 | (1,092) | (216)
|  | 26,875 | 56,068
Profit before tax |  | 1,695,111 | 3,087,741
Tax on profit | 11 | (512,977) | (1,354,944)
Profit for the financial year |  | 1,182,134 | 1,732,797
Profit/(loss) attributable to: |  |  |
Owners of the company |  | 1,182,134 | 1,732,797

The group has no recognised gains or losses for the year other than the results above.

Malcolm Barnecutt Bakery (Holdings) Limited

Consolidated Balance Sheet

30 June 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 12 | 586,005 | 703,205
Tangible assets | 13 | 7,486,079 | 7,136,302
Investment property | 14 | 2,955,000 | 3,297,500
Other financial assets | 15 | 1,000,196 | 100
|  | 12,027,280 | 11,137,107
Current assets |  |  |
Stocks | 17 | 337,668 | 296,795
Debtors | 18 | 1,415,791 | 1,858,785
Cash at bank and in hand |  | 964,877 | 769,607
|  | 2,718,336 | 2,925,187
Creditors: Amounts falling due within one year | 19 | (1,070,472) | (1,248,624)
Net current assets |  | 1,647,864 | 1,676,563
Total assets less current liabilities |  | 13,675,144 | 12,813,670
Creditors: Amounts falling due after more than one year | 19 | - | (5,095)
Provisions for liabilities | 22 | (1,247,228) | (1,322,793)
Net assets |  | 12,427,916 | 11,485,782
Capital and reserves |  |  |
Called up share capital | 24 | 100 | 100
Capital redemption reserve |  | 3,423,084 | 3,423,084
Fair value reserve |  | 958,737 | 852,637
Profit and loss account |  | 8,045,995 | 7,209,961
Equity attributable to owners of the company |  | 12,427,916 | 11,485,782
Total equity |  | 12,427,916 | 11,485,782

Approved and authorised by the director on 4 February 2026

......................................... Mr J Barnecutt Director

Company Registration Number: 07909189

Malcolm Barnecutt Bakery (Holdings) Limited

Balance Sheet

30 June 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Investments | 16 | 3,073,194 | 3,073,194
Creditors: Amounts falling due within one year | 19 | (10) | (10)
Net assets |  | 3,073,184 | 3,073,184
Capital and reserves |  |  |
Called up share capital | 24 | 100 | 100
Capital redemption reserve |  | 3,073,084 | 3,073,084
Shareholders' funds |  | 3,073,184 | 3,073,184

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £240,000 (2024 - profit of £246,000).

Approved and authorised by the director on 4 February 2026

......................................... Mr J Barnecutt Director

Company Registration Number: 07909189

Malcolm Barnecutt Bakery (Holdings) Limited

Consolidated Statement of Changes in Equity

Year Ended 30 June 2025

| Share capital £ | Capital redemption reserve £ | Fair value reserve £ | Profit and loss account £ | Total £ | Total equity £
At 1 July 2024 | 100 | 3,423,084 | 852,637 | 7,209,961 | 11,485,782 | 11,485,782
Profit for the year | - | - | - | 1,182,134 | 1,182,134 | 1,182,134
Total comprehensive income | - | - | - | 1,182,134 | 1,182,134 | 1,182,134
Dividends | - | - | - | (240,000) | (240,000) | (240,000)
Transfers | - | - | 106,100 | (106,100) | - | -
At 30 June 2025 | 100 | 3,423,084 | 958,737 | 8,045,995 | 12,427,916 | 12,427,916

| Share capital £ | Capital redemption reserve £ | Fair value reserve £ | Profit and loss account £ | Total £ | Total equity £
At 1 July 2023 | 100 | 3,423,084 | - | 6,575,801 | 9,998,985 | 9,998,985
Profit for the year | - | - | - | 1,732,797 | 1,732,797 | 1,732,797
Dividends | - | - | - | (246,000) | (246,000) | (246,000)
Transfers | - | - | 852,637 | (852,637) | - | -
At 30 June 2024 | 100 | 3,423,084 | 852,637 | 7,209,961 | 11,485,782 | 11,485,782

Malcolm Barnecutt Bakery (Holdings) Limited

Statement of Changes in Equity

Year Ended 30 June 2025

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 July 2024 | 100 | 3,073,084 | - | 3,073,184
Profit for the year | - | - | 240,000 | 240,000
Dividends | - | - | (240,000) | (240,000)
At 30 June 2025 | 100 | 3,073,084 | - | 3,073,184

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 July 2023 | 100 | 3,073,084 | - | 3,073,184
Profit for the year | - | - | 246,000 | 246,000
Dividends | - | - | (246,000) | (246,000)
At 30 June 2024 | 100 | 3,073,084 | - | 3,073,184

Malcolm Barnecutt Bakery (Holdings) Limited

Consolidated Statement of Cash Flows

Year Ended 30 June 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 1,182,134 | 1,732,797
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 751,000 | 734,134
Financial asset net gains/losses through profit and loss |  | (96) | -
Changes in fair value of investment property | 14 | 342,500 | (1,125,445)
Loss/(profit) on disposal of tangible assets |  | 7,156 | (32,432)
Finance income | 9 | (27,871) | (56,284)
Finance costs | 10 | 1,092 | 216
Income tax expense | 11 | 512,977 | 1,354,944
|  | 2,768,892 | 2,607,930
Working capital adjustments |  |  |
(Increase)/decrease in stocks | 17 | (40,873) | 715
Decrease/(increase) in trade debtors | 18 | 442,994 | (989,244)
(Decrease)/increase in trade creditors | 19 | (443,893) | 534,211
Cash generated from operations |  | 2,727,120 | 2,153,612
Income taxes paid | 11 | (322,154) | (404,814)
Net cash flow from operating activities |  | 2,404,966 | 1,748,798
Cash flows from investing activities |  |  |
Interest received |  | 27,871 | 56,284
Acquisitions of tangible assets |  | (1,060,233) | (3,174,805)
Proceeds from sale of tangible assets |  | 69,500 | 63,743
Acquisition of investment properties | 14 | - | (1,011,296)
Acquisition of investment portfolio |  | (1,000,000) | -
Net cash flows from investing activities |  | (1,962,862) | (4,066,074)
Cash flows from financing activities |  |  |
Payments to finance lease creditors |  | (6,834) | (5,224)
Dividends paid |  | (240,000) | (246,000)
Net cash flows from financing activities |  | (246,834) | (251,224)
Net increase/(decrease) in cash and cash equivalents |  | 195,270 | (2,568,500)
Cash and cash equivalents at 1 July |  | 769,607 | 3,338,107
Cash and cash equivalents at 30 June |  | 964,877 | 769,607

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 5 b/c
Normandy Way
Bodmin
Cornwall
PL31 1EU

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2025. No profit and loss account is presented for Malcolm Barnecutt Bakery (Holdings) Limited, as permitted by section 408 of the Companies Act 2006.
Subsidiary undertakings are included under the merger accounting method. Under this method no goodwill arose from the group reorganisation.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Judgements and key sources of estimation uncertainty

In the application of the groups accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience and include:
Useful economic life of goodwill
The directors have reasonably assessed the useful economic life of goodwill as being in excess of 10 years, on the basis the goodwill represents the premium paid for access to the market place in which the business operates which will be in existence for longer than 10 years.
Fair value of investment property
Investment property is carried at fair value determined by external valuers. The valuers have based the valuation on the amount an investor could be expected to pay for the existing leases and rental income i.e. the freehold interest, or market approach, adjusted if necessary for any difference in the nature, location or condition of the specific asset. The investment properties were valued in September and October 2025 and the directors deem the valuations to be an appropriate estimate of the market value as at 30 June 2025.

Revenue recognition

Turnover represents the fair value of the consideration receivable, excluding Value Added Tax, in the ordinary course of business for the sale of goods and services provided.
Revenue is recognised at the point of sale at the till or when the sale is completed at the point of delivery as applicable.
The group also receives income from rental properties. Group rental income is eliminated on consolidation and third party rental income is included within other operating income.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Freehold property (excluding land) | 2% straight line
Leasehold property (excluding land) | Over the length of the lease
Fixtures, fittings and equipment | 25% reducing balance
Motor vehicles | 25% reducing balance
Plant and machinery | 25% reducing balance

Investment property

Investment property is carried at fair value. Changes in fair value are recognised in profit or loss and transferred to the fair value reserve to remove undistributable reserves from the profit and loss reserve.
No depreciation is provided in respect of investment properties applying the fair value model.
Investment property used within the group is classified as PPE and held at cost less depreciation.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its expected useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Goodwill | 20 years straight line

Goodwill is amortised over a period in excess of 10 years. This is justified by the directors on the basis that the goodwill represents the premium paid for access to the market place in which the business operates which will be in existence for longer than 10 years.

Investments

Fixed asset investments are measured at cost less impairment.
Investments in listed shares are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the profit and loss in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the profit and loss based on the market value at the year end.

Stocks

Stocks are stated at the lower of cost and net realisable value, after due regard for obsolete and slow moving items.

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company. Contribtuions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

Financial instruments

Classification
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

3 | Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods (all UK) | 15,291,180 | 13,625,276

4 | Other operating income

The analysis of the group's other operating income for the year is as follows:

| 2025 £ | 2024 £
Sub lease rental income | 89,179 | 112,070
Miscellaneous other operating income | 3,461 | 848
| 92,640 | 112,918

5 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 633,800 | 616,934
Amortisation expense | 117,200 | 117,200
Operating lease expense - property | 326,774 | 339,992
Loss/(profit) on disposal of property, plant and equipment | 7,156 | (32,432)

6 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 5,771,571 | 5,013,867
Social security costs | 518,231 | 407,159
Pension costs, defined contribution scheme | 330,824 | 351,655
| 6,620,626 | 5,772,681

The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

| 2025 No. | 2024 No.
Production | 217 | 214
Administration and support | 8 | 5
Other departments | 3 | 3
| 228 | 222

7 | Director's remuneration

The director's remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 26,043 | 27,690
Contributions paid to money purchase schemes | 51,600 | 60,366
| 77,643 | 88,056

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 1 | 2

8 | Auditor's remuneration

| 2025 £ | 2024 £
Audit of these financial statements | 18,150 | 16,500

9 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 17,392 | 55,771
Other interest receivable | 10,479 | 513
| 27,871 | 56,284

10 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on obligations under finance leases and hire purchase contracts | 1,092 | 216

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

11 | Taxation

Tax charged/(credited) in the consolidated profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 588,542 | 333,117
Deferred taxation |  |
Arising from origination and reversal of timing differences | (75,565) | 1,021,827
Tax expense in the income statement | 512,977 | 1,354,944

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 1,695,111 | 3,087,741
Corporation tax at standard rate | 423,778 | 771,935
Tax increase from effect of capital allowances and depreciation | 80,226 | 93,670
Effect of revenues exempt from taxation | (24) | -
Effect of expense not deductible in determining taxable profit (tax loss) | 87,377 | 56,534
Deferred tax expense from unrecognised temporary difference from a prior period | - | 412,822
Tax (decrease)/increase from effect of indexation allowance on capital gains | (78,380) | 19,983
Total tax charge | 512,977 | 1,354,944

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Deferred tax

Group

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 1,055,683
Other timing differences | 2,884 | -
Revaluation of investment properties | - | 194,429
| 2,884 | 1,250,112

2024 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 1,052,481
Other timing differences | 2,497 | -
Revaluation of investment property | - | 272,808
| 2,497 | 1,325,289

12 | Intangible assets

Group

| Goodwill £
Cost or valuation
At 1 July 2024 | 2,344,005
At 30 June 2025 | 2,344,005
Amortisation
At 1 July 2024 | 1,640,800
Amortisation charge | 117,200
At 30 June 2025 | 1,758,000
Carrying amount
At 30 June 2025 | 586,005
At 30 June 2024 | 703,205

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

13 | Tangible assets

Group

| Land and buildings £ | Furniture, fittings and equipment £ | Motor vehicles £ | Other property, plant and equipment £ | Total £
Cost or valuation
At 1 July 2024 | 7,989,536 | 1,123,209 | 651,584 | 1,223,736 | 10,988,065
Additions | 672,967 | 12,869 | 232,180 | 142,217 | 1,060,233
Disposals | - | - | (176,267) | - | (176,267)
At 30 June 2025 | 8,662,503 | 1,136,078 | 707,497 | 1,365,953 | 11,872,031
Depreciation
At 1 July 2024 | 1,794,372 | 890,248 | 351,960 | 815,183 | 3,851,763
Charge for the year | 320,802 | 61,487 | 113,791 | 137,720 | 633,800
Eliminated on disposal | - | - | (99,611) | - | (99,611)
At 30 June 2025 | 2,115,174 | 951,735 | 366,140 | 952,903 | 4,385,952
Carrying amount
At 30 June 2025 | 6,547,329 | 184,343 | 341,357 | 413,050 | 7,486,079
At 30 June 2024 | 6,195,164 | 232,961 | 299,624 | 408,553 | 7,136,302

Included within the net book value of land and buildings above is £5,886,480 (2024 - £5,364,374) in respect of freehold land and buildings, and £660,849 (2024 - £830,790) in respect of long leasehold land and buildings.

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Motor vehicles | 10,587 | 14,116

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

14 | Investment properties

Group

| 2025 £
At 1 July | 3,297,500
Fair value adjustments | (342,500)
At 30 June | 2,955,000

The investment properties were externally revalued in September and October 2025 by an independent valuer. The valuations were carried out by Vickery Holman, a company of chartered surveyors. The assets were valued at £2,955,000 and the directors consider this to be an appropriate best estimate of market value as at 30 June 2025.

15 | Other financial assets

Group

| Financial assets at fair value through profit and loss £ | Financial assets at cost less impairment £ | Total £
Non-current financial assets
Cost or valuation
At 1 July 2024 | - | 100 | 100
Revaluations | 96 | - | 96
Additions | 1,000,000 | - | 1,000,000
At 30 June 2025 | 1,000,096 | 100 | 1,000,196
Carrying amount
At 30 June 2025 | 1,000,096 | 100 | 1,000,196
At 30 June 2024 | - | 100 | 100

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

16 | Investments

Company

| 2025 £ | 2024 £
Investments in subsidiaries | 3,073,194 | 3,073,194

Subsidiaries | £
Cost or valuation
At 1 July 2024 | 3,073,194
Provision
Carrying amount
At 30 June 2025 | 3,073,194
At 30 June 2024 | 3,073,194

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
Malcolm Barnecutt Bakery Limited | Unit 5 b/c Normandy Way Bodmin Cornwall PL31 1EU England and Wales | Ordinary shares | 100% | 100%
Malcolm Barnecutt Bakery (Properties) Limited | Unit 5 b/c Normandy Way Bodmin Cornwall PL31 1EU England and Wales | Ordinary shares | 100% | 100%

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Subsidiary undertakings
Malcolm Barnecutt Bakery Limited The principal activity of Malcolm Barnecutt Bakery Limited is the production and sale of baked goods.
Malcolm Barnecutt Bakery (Properties) Limited The principal activity of Malcolm Barnecutt Bakery (Properties) Limited is rental of properties.

17 | Stocks

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Raw materials and consumables | 337,668 | 296,795 | - | -

18 | Debtors

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Trade debtors | 230,761 | 321,203 | - | -
Other debtors | 1,070,809 | 1,415,063 | - | -
Prepayments | 114,221 | 122,519 | - | -
| 1,415,791 | 1,858,785 | - | -

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

19 | Creditors

|  | Group | Company
| Note | 2025 £ | 2024 £ | 2025 £ | 2024 £
Due within one year |  |  |  |  |
Loans and borrowings | 20 | 4,642 | 5,289 | - | -
Trade creditors |  | 416,545 | 577,405 | - | -
Social security and other taxes |  | 113,099 | 130,921 | - | -
Other creditors |  | 45,435 | 75,495 | 10 | 10
Accruals |  | 172,626 | 407,777 | - | -
Corporation tax | 11 | 318,125 | 51,737 | - | -
|  | 1,070,472 | 1,248,624 | 10 | 10
Due after one year |  |  |  |  |
Loans and borrowings | 20 | - | 5,095 | - | -

20 | Loans and borrowings

Non-current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | - | 5,095 | - | -

Current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | 4,642 | 5,289 | - | -

The finance lease liabilities are secured against the assets to which they relate.

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

21 | Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 202,925 | 279,925
Later than one year and not later than five years | 885,945 | 959,560
Later than five years | 428,825 | 670,025
| 1,517,695 | 1,909,510

The amount of non-cancellable operating lease payments recognised as an expense during the year was £301,383 (2024 - £330,181).

Operating leases - lessor

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 12,000 | 9,380
Later than one year and not later than five years | 23,000 | -
| 35,000 | 9,380

Total contingent rents recognised as income in the period are £89,179 (2024 - £112,070).

There is one significant lease agreement over an asset. The asset has been leased out since early 2025. The lease constitutes an operating lease. The expectation is that the lease is utilised for a minimum period of 2-3 years and therefore lease income, including lease incentives, has been recognised on a straight-line basis. The other assets are on rolling lease agreements.

22 | Deferred tax and other provisions

Group

| Deferred tax £
At 1 July 2024 | 1,322,793
Decrease in existing provisions | (75,565)
At 30 June 2025 | 1,247,228

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

23 | Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £330,824 (2024 - £351,655).

24 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary A shares of £1 each | 40 | 40 | 40 | 40
Ordinary B shares of £1 each | 20 | 20 | 20 | 20
Ordinary C shares of £1 each | 30 | 30 | 30 | 30
Ordinary D shares of £1 each | 10 | 10 | 10 | 10
| 100 | 100 | 100 | 100

25 | Dividends

Interim dividends paid

|  | 2025 £ |  | 2024 £
Interim dividend of £Nil (2024 - £20,500.00) per each Ordinary A Shares |  | - |  | 102,500
Interim dividend of £12,000.00 (2024 - £4,100.00) per each Ordinary B Shares |  | 240,000 |  | 143,500
|  | 240,000 |  | 246,000

26 | Commitments

Group

Capital commitments

This relates to a committment made to building works and a dilapidation provision.
The total amount contracted for but not provided in the financial statements was £266,939 (2024 - £456,408).

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

27 | Analysis of changes in net debt

Group

| At 1 July 2024 £ | Cash flows £ | At 30 June 2025 £
Cash and cash equivalents |  |  |
Cash | 769,607 | 195,270 | 964,877
Borrowings |  |  |
Long term borrowings | (5,095) | 5,095 | -
Short term borrowings | (5,289) | 647 | (4,642)
| (10,384) | 5,742 | (4,642)
| 759,223 | 201,012 | 960,235

28 | Related party transactions

The company and group have taken advantage of the exemption in FRS102 "Related Party Disclosures" from disclosing transactions with other wholly owned members of the group.

Group

Key management compensation

| 2025 £ | 2024 £
Salaries and other short term employee benefits | 109,514 | 141,902

Transactions with the director

2025 | At 1 July 2024 £ | Advances to director £ | Repayments by director £ | At 30 June 2025 £
Director 1
Director's loan account | (39,128) | 30,131 | - | (8,997)
Director 2
Director's loan account | 79,975 | 204,560 | (249,600) | 34,935

Malcolm Barnecutt Bakery (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 June 2025

2024 | At 1 July 2023 £ | Advances to director £ | Repayments by director £ | At 30 June 2024 £
Director 1
Director's loan account | (45,965) | 109,337 | (102,500) | (39,128)
Director 2
Director's loan account | 4,723 | 227,852 | (152,600) | 79,975

The directors loan accounts are repayable on demand. Interest is charged at 2.25% on overdrawn directors loan accounts.

Summary of transactions with other related parties

Family member of a director During the year a family member of a director received a salary and other short term benefits of £110,600 (2024 - £151,240).

Loans to related parties

Other related parties are classed as a related party due to having a director in common.

| Other related parties
| 2025 £ | 2024 £
At start of period | 1,028,172 | 400,928
Advanced | 5,000 | 627,244
At end of period | 1,033,172 | 1,028,172