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Malcolm Barnecutt Bakery Limited
Annual Report and Financial Statements
Year Ended 30 June 2025

Registration number: 07268223

Malcolm Barnecutt Bakery Limited

Contents

Strategic Report | 1
Directors' Report | 2
Statement of Directors' Responsibilities | 3
Independent Auditor's Report | 4 to 7
Profit and Loss Account | 8
Balance Sheet | 9
Statement of Changes in Equity | 10
Notes to the Financial Statements | 11 to 24

Malcolm Barnecutt Bakery Limited

Strategic Report for the Year Ended 30 June 2025

The directors present their strategic report for the year ended 30 June 2025.

Principal activity

The principal activity of the company is the production and sale of baked goods.

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 company's key financial 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 company could be subject to legal recourse and claims including product liability matters. The company could also be impacted by the loss in trade resulting from a poor food hygiene rating. The company 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 and authorised by the Board on 4 February 2026 and signed on its behalf by:

......................................... Mr J Barnecutt Company secretary and director

Malcolm Barnecutt Bakery Limited

Directors' Report for the Year Ended 30 June 2025

The directors present their report and the financial statements for the year ended 30 June 2025.

Directors of the company

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

Mr J Barnecutt - Company secretary and director

Mr M Barnecutt (ceased 12 June 2025)

Mr A Hallett

Financial risk management objectives and policies

Objectives and policies

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

Price risk, credit risk and liquidity risk

Price risk
The company is at risk of volatility in prices of raw materials such as meat, dairy and fish products. The company mitigates its risk to this volatility by using a number of suppliers.
Credit risk
As the majority of sales are for cash, this is not a significant risk however the company does actively chase any outstanding debts and regularly monitors credit terms.
Liquidity risk
There is a risk that the company 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 company.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

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

......................................... Mr J Barnecutt Company secretary and director

Malcolm Barnecutt Bakery Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

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

• | state whether applicable United Kingdom 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.

Malcolm Barnecutt Bakery Limited

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

Opinion

We have audited the financial statements of Malcolm Barnecutt Bakery Limited (the 'company') for the year ended 30 June 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 30 June 2025 and of its profit for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

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.

Malcolm Barnecutt Bakery Limited

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

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and 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 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 Directors' 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, 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 Statement of Directors' Responsibilities set out on page 3, 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 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:

Malcolm Barnecutt Bakery Limited

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

As part of our audit planning we obtained an understanding of the legal and regularity framework that is applicable to the company and the industry/sector in which it operates to identify the key laws and regulations affecting the company. As part of our assessment process we discussed with management the laws and regulations applicable to the company, 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 company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company 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 company 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 company'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 company's GDPR policy and made enquiries of any breaches in the year.
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.

Malcolm Barnecutt Bakery Limited

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

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)
PKF Francis Clark, Statutory Auditor
Melville Building East
Unit 18
23 Royal William Yard
Plymouth
Devon
PL1 3GW

4 February 2026

Malcolm Barnecutt Bakery Limited

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) | (8,870,940)
Gross profit |  | 5,265,354 | 4,754,336
Administrative expenses |  | (3,231,139) | (2,862,561)
Other operating income | 4 | 3,461 | 848
Operating profit | 5 | 2,037,676 | 1,892,623
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)
Profit before tax |  | 2,064,551 | 1,948,691
Tax on profit | 11 | (589,301) | (398,783)
Profit for the financial year |  | 1,475,250 | 1,549,908

The above results were derived from continuing operations.

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

Malcolm Barnecutt Bakery Limited

Balance Sheet

30 June 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 12 | 586,005 | 703,205
Tangible assets | 13 | 1,599,599 | 1,771,928
Other financial assets | 14 | 1,000,196 | 100
|  | 3,185,800 | 2,475,233
Current assets |  |  |
Stocks | 15 | 337,668 | 296,795
Debtors | 16 | 8,261,316 | 7,894,314
Cash at bank and in hand |  | 964,877 | 769,607
|  | 9,563,861 | 8,960,716
Creditors: Amounts falling due within one year | 17 | (1,318,677) | (1,235,879)
Net current assets |  | 8,245,184 | 7,724,837
Total assets less current liabilities |  | 11,430,984 | 10,200,070
Creditors: Amounts falling due after more than one year | 17 | (2,823,084) | (2,828,179)
Provisions for liabilities | 20 | (336,362) | (335,603)
Net assets |  | 8,271,538 | 7,036,288
Capital and reserves |  |  |
Called up share capital |  | 100 | 100
Capital redemption reserve |  | 350,000 | 350,000
Profit and loss account |  | 7,921,438 | 6,686,188
Shareholders' funds |  | 8,271,538 | 7,036,288

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

......................................... Mr J Barnecutt Company secretary and director

Company Registration Number: 07268223

Malcolm Barnecutt Bakery 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 | 350,000 | 6,686,188 | 7,036,288
Profit for the year | - | - | 1,475,250 | 1,475,250
Dividends | - | - | (240,000) | (240,000)
At 30 June 2025 | 100 | 350,000 | 7,921,438 | 8,271,538

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 July 2023 | 100 | 350,000 | 5,382,280 | 5,732,380
Profit for the year | - | - | 1,549,908 | 1,549,908
Dividends | - | - | (246,000) | (246,000)
At 30 June 2024 | 100 | 350,000 | 6,686,188 | 7,036,288

Malcolm Barnecutt Bakery 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

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.

Summary of disclosure exemptions

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.
The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows and an Analysis of changes in Net Debt on the basis that it is a qualifying entity and its ultimate parent company, Malcolm Barnecutt Bakery (Holdings) Limited, includes the company’s cash flows and net debt in its own consolidated financial statements. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other wholly owned members of Malcolm Barnecutt Bakery (Holdings) Limited.

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Judgements and key sources of estimation uncertainty

In the application of the company’s 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.

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.

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 company 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 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.

Depreciation

Depreciation is charged so as to write off the cost of an asset, less its estimated residual value, over its estimated useful economic life as follows:

Asset class | Depreciation method and rate
Leasehold property | Over the length of the lease
Fixtures, fittings and equipment | 25% reducing balance
Motor vehicles | 25% reducing balance
Plant and machinery | 25% reducing balance

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.

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Amortisation

Amortisation is charged so as to write off the cost of an asset, less its estimated residual value, over its estimated useful economic life as follows:

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

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 P&L 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 P&L based on the market value at the year end.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving items.

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.

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. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Financial instruments

Classification
The company holds the following financial instruments:
• Fixed asset investments,
• Financial investments held at fair value,
• Short-term trade and other debtors and creditors; and
• 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 FRS 102.
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.

3 | Revenue

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

| 2025 £ | 2024 £
Miscellaneous other operating income | 3,461 | 848

5 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 516,094 | 528,663
Amortisation expense | 117,200 | 117,200
Loss/(profit) on disposal of property, plant and equipment | 7,156 | (32,432)

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

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 | 407,158
Pension costs, defined contribution scheme | 330,824 | 351,655
| 6,620,626 | 5,772,680

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

| 2025 No. | 2024 No.
Production | 217 | 214
Administration and support | 11 | 8
| 228 | 222

7 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 135,557 | 167,967
Contributions paid to money purchase schemes | 112,570 | 111,303
| 248,127 | 279,270

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 | 2 | 3

8 | Auditor's remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 13,915 | 12,650

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

9 | Interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 17,392 | 55,771
Other finance income | 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

11 | Taxation

Tax charged/(credited) in the 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 | 759 | 65,666
Tax expense in the income statement | 589,301 | 398,783

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

| 2025 £ | 2024 £
Profit before tax | 2,064,551 | 1,948,691
Corporation tax at standard rate | 516,138 | 487,173
Tax increase from effect of capital allowances and depreciation | 80,074 | 59,060
Effect of revenues exempt from taxation | (24) | -
Effect of expense not deductible in determining taxable profit (tax loss) | 414 | 1,024
Tax decrease arising from group relief | (7,301) | (148,474)
Total tax charge | 589,301 | 398,783

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Deferred tax

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 339,246
Other timing differences | 2,884 | -
| 2,884 | 339,246

2024 | Asset £ | Liability £
Difference between accumulated depreciation and capital allowances | - | 338,099
Other timing differences | 2,496 | -
| 2,496 | 338,099

12 | Intangible assets

| Goodwill £
Cost
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 Limited

Notes to the Financial Statements

Year Ended 30 June 2025

13 | Tangible assets

| Land and buildings £ | Fixtures, fittings and equipment £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost
At 1 July 2024 | 2,248,172 | 1,123,209 | 651,584 | 1,223,736 | 5,246,701
Additions | 33,155 | 12,869 | 232,180 | 142,217 | 420,421
Disposals | - | - | (176,267) | - | (176,267)
At 30 June 2025 | 2,281,327 | 1,136,078 | 707,497 | 1,365,953 | 5,490,855
Depreciation
At 1 July 2024 | 1,417,382 | 890,248 | 351,960 | 815,183 | 3,474,773
Charge for the year | 203,096 | 61,487 | 113,791 | 137,720 | 516,094
Eliminated on disposal | - | - | (99,611) | - | (99,611)
At 30 June 2025 | 1,620,478 | 951,735 | 366,140 | 952,903 | 3,891,256
Carrying amount
At 30 June 2025 | 660,849 | 184,343 | 341,357 | 413,050 | 1,599,599
At 30 June 2024 | 830,790 | 232,961 | 299,624 | 408,553 | 1,771,928

Included within the net book value of land and buildings above is £Nil (2024 - £Nil) 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 Limited

Notes to the Financial Statements

Year Ended 30 June 2025

14 | Other investments

| 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

15 | Stocks

| 2025 £ | 2024 £
Stocks | 337,668 | 296,795

16 | Debtors

| 2025 £ | 2024 £
Trade debtors | 230,761 | 321,203
Other debtors | 37,637 | 386,892
Amounts due from group undertakings | 6,845,525 | 6,035,528
Loans to related parties | 1,033,172 | 1,028,172
Prepayments | 114,221 | 122,519
| 8,261,316 | 7,894,314

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

17 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 18 | 254,642 | 255,289
Trade creditors |  | 416,545 | 577,405
Corporation tax |  | 318,125 | 51,737
Social security and other taxes |  | 113,099 | 130,921
Other creditors |  | 43,640 | 75,495
Accrued expenses |  | 172,626 | 145,032
|  | 1,318,677 | 1,235,879
Due after one year |  |  |
Loans and borrowings | 18 | 2,823,084 | 2,828,179

18 | Loans and borrowings

| 2025 £ | 2024 £
Non-current loans and borrowings
Redeemable preference shares | 2,823,084 | 2,823,084
HP and finance lease liabilities | - | 5,095
| 2,823,084 | 2,828,179

Current loans and borrowings

| 2025 £ | 2024 £
Hire purchase contracts | 4,642 | 5,289
Redeemable preference shares | 250,000 | 250,000
| 254,642 | 255,289

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

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

19 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 256,425 | 279,925
Later than one year and not later than five years | 922,735 | 959,560
Later than five years | 428,825 | 670,025
| 1,607,985 | 1,909,510

The amount of non-cancellable operating lease payments recognised as an expense during the year was £318,093 (2024 - £330,181).

20 | Provisions for liabilities

| Deferred tax £
At 1 July 2024 | 335,603
Increase in existing provisions | 759
At 30 June 2025 | 336,362

21 | Pension and other schemes

Defined contribution pension scheme

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

22 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 100 | 100 | 100 | 100
Redeemable preference shares of £1 each | 3,073,084 | 3,073,084 | 3,073,084 | 3,073,084
| 3,073,184 | 3,073,184 | 3,073,184 | 3,073,184

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Redeemable preference shares

The Redeemable preference shares are redeemable at the option of the holder. After one year from the date of allotment the shares may be redeemed upon giving one month's notice, provided that no more than £250,000 can be redeemed in an accounting year. They are redeemable at £1 per share and carry no voting rights. Winding up value for redeemable preference shares is £1.

23 | Dividends

Interim dividends paid

|  | 2025 £ |  | 2024 £
Ordinary share dividends paid during the year |  | 240,000 |  | 246,000

24 | Commitments

Capital commitments

There is a dilapidation provision required for the end of a lease held by the company. The total amount contracted for but not provided in the financial statements was £9,939 (2024 - £Nil).
Additionally, there is a financial commitment not included in the balance sheet of £117,000 (2024: £nil). This relates to a capital commitment made to building works.

25 | Related party transactions

The company has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with other wholly owned members of the group.

Key management personnel

The directors do not consider any employees other than the statutory directors, whose remuneration is disclosed in note 7, to be key management personnel within the definition contained in FRS 102.

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Transactions with directors

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

2024 | At 1 July 2023 £ | Advances to director £ | Repayments by director £ | At 30 June 2024 £
Director 2
Director's loan account | 4,723 | 227,852 | (152,600) | 79,975
Director 3
Director's loan account | 710 | - | (710) | -
Director 1
Director's loan account | (45,965) | 109,337 | (102,500) | (39,128)

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 of a director During the year a family member of a director received remuneration (including pension contributions) of £110,600 (2024 - £151,240).

Malcolm Barnecutt Bakery Limited

Notes to the Financial Statements

Year Ended 30 June 2025

Loans to related parties

2025 | Other related parties £ | Total £
At start of period | 1,028,172 | 1,028,172
Advanced | 5,000 | 5,000
At end of period | 1,033,172 | 1,033,172

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

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

26 | Parent and ultimate parent undertaking

The company's immediate parent is Malcolm Barnecutt Bakery (Holdings) Limited, incorporated in England and Wales.
The ultimate controlling party is Mr J Barnecutt by virtue of his majority shareholding in Malcolm Barnecutt Bakery (Holdings) Limited.