Company Registration No. 07717083 (England and Wales)
MELLORS CATERING SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 JULY 2025
31 July 2025
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
MELLORS CATERING SERVICES LIMITED
COMPANY INFORMATION
Director
Mr M Timmerman
Company number
07717083
Registered office
West Lancs Technology Management Centre
White Moss Business Park
Moss Lane View
Skelmersdale
England
WN8 9TN
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
MELLORS CATERING SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 24
MELLORS CATERING SERVICES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 JULY 2025
- 1 -

The director presents the strategic report for the period ended 31 July 2025.

Review of the business

The company trades as a contract caterer serving quality meals on a daily basis under long-term fixed price or cost-plus management fee contracts. These are mainly serving the education sector (Primary and Secondary Schools in north of England). Over 95% of trade is term time only, 38 weeks per academic year. This brings a high level of revenue fluctuation over the year; whilst labour costs are equated, resulting in well planned cash flow variations over the year.

During the period, the company has extended the year end to 31 July 2025, such as to better align the financial reporting cycle with operational and strategic planning timelines. This extension was performed during a period of no trade for the company, incurring costs as detailed below.

The company’s management team has continued to work on improving quality and financial contribution from the core site portfolio, re-structing and re-negotiating longer term arrangements, and not renewing contracts that do not meet the financial and / or operational criteria of the company. Success has been achieved this year in improving the contribution of underperforming contracts to meet minimum earning requirements.

The company started the year with 318 trading sites and ended it with 315 sites, with 38 new sites to be mobilised for the new academic year (September 2025). New site opening during the year have required significant development to bring their performance up to standard and budget.

The company has now adopted a 12 month accounting financial and payroll period, bringing many benefits to the reporting, controls, management information and client reporting. The financial year has therefore been extended from 17 th July to 31 st July.

The additional 2 weeks of this 54 week financial year are beyond the academic year. Therefore, minimal revenue was realised to contribution to the 2 weeks additional payroll costs and sundry costs. It is calculated that the nett cost of the 2 additional weeks to 31 st July 2025 is £1,0 93 k The next financial year will be 52 weeks and there are no plans for any future adjustments to accounting periods of year end date.

Food inflation was approximately 3.2%. Its impact was effectively mitigated through the annual catering review process and the investment / launch of Mellors new site-based procurement IT system. This new system giving Mellors catering mangers real time product pricing and availability from Mellors local food suppliers.

Higher than anticipated annual wage reviews and NJC costs have also been mitigated through annual review of catering subsidies and or customer tariffs and free school meal allowances. Free school meals represent 51.2% of revenue this year, increasing from 49.3% last year and 47.1% previously. Further increases of UK households entitled to free school meals are forecast to further enhance this percentage.

Contract catering is a labour intense sector of the hospitality industry, with complex and high levels of pension arrangements. In year new NI requirements and National Living Wage enhancements have increased labour cost % this year to 60.1%, last year’s 54.4%.

In year national business cost pressures of volatile energy markets do not substantially impact the company as services are provided on third party premises.

Effective management and healthy market conditions have delivered this year has seen the good performance of EBIT D A considering the impact of extended year end and other items illustrated above. The company’s continued strong performance is built on the foundations of offering the highest level of food and service in the UK education sector, reflected in our client satisfaction rating, portfolio retention and new F.R.E.S.H., Mellors Mantras.

MELLORS CATERING SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 2 -
Principal risks and uncertainties

95% (2024: 92%) of the company’s business is focused in the education sector, with the remainder in commercial and business and industry catering contacts. This strategic balance of business ensures healthy payment terms and minimises bad debts. The management team have carried out effective work during the year making significant in-roads into long term debts of historic / closed contacts.

Annual enhancements of national living wage / NI rates / NI thresholds / NJC pay reviews – these are funded through the company’s annual review of catering subsidies and meal prices.

Throughout the business, staff have and continue to be regularly updated both on company progress and relevant measures to keep them safe whilst providing service in order to avoid accidents at work which is the risk that is always present in a working environment such as that found in the company’s contracts.

Contract retention remains strong given the company’s maturing site portfolio. New contract acquisitions have met targets this year, with the majority being mobilised a t financial year end. To drive Mellors competitive end, the company as invested in a new Business Development Director and Business Development Manager, better suited to the complexity arena of competitive tendering of large Trust and Cluster multi-site contracts.

Ms. Julie Leigh has provided excellent support as Finance Director this financial year, making effective changes to communication channels, audit files, financial reports, period dates and financial year ends. Mr. James Treadwell (N on-E xecutive D irector) has continued to provided quality support and financial advice for the company and the finalisation of past director, Klaas Timmerman ‘s estate.

Development and performance

Mellors new site-based procurement system has been rolled out into all sites bringing new real time food pricing and availability information to catering managers.

Accounting systems were further reviewed in year. The company’s current IT provider has continued as a long-term partner, developing improved bespoke financial management HR and Payroll IT software.

Between the close of the accounting period and the date of these accounts, the director and senior management team have continually reviewed the trading performance and the value of the assets shown in the Balance Sheet. In their post Balance Sheet review the director concluded that the attached accounts represent a true and fair view of the company’s financial position as represented by the Balance Sheet as at the accounts date and that the asset values have not been impaired.

The company has established a strong business in the midlands over past 5 years and is now strategically selling further south with current opportunities in the Southeast of England.

Key performance indicators

It is important, especially as the company continues to be impacted by increased costs in its key production costs, that the company continues to improve the control of these day to day production costs and new working conditions, menus and customer offerings were introduced during the period under review and measured at each monthly management meeting.

The ongoing and current performance of the business by site is measured at the end of every trading week and compared to budgets, prior year incorporating factors such as trading days, sales per unit per day and sales per employee hour.

The director is pleased to report that all these indicators are showing steady trading as at the date of signing these accounts.

Results and dividends

The company generate d profits before tax of £198k, compar ed to the profits generated in the previous year £1,125k. This performance represents the ability of the company to trade profitably during ongoing challenging trading conditions, and also should be read in conjunction with additional trading costs of £1,0 93 k attributed to the additional 2 weeks up to the new financial year end of 31 st July 2025.

MELLORS CATERING SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 3 -
Promoting the success of the company

As this is the third year as a Large Company, the Director and Senior Management Team have had regard to their S172 responsibilities and how the company has to act differently and focused on issues with the inclusion of all employees in the communication process.

As reported previously, the company implemented an internet-based staff communication system, two-way communication channels. This is provided highly successful with benefits to staff motivation and company culture. Short / long term sickness and staff absenteeism have all reduced, though cause and effect is hard to establish. Mellors launched an all-new website this year, bringing additional communication channels for all.

We look forward to sharing future successes stories with all our 1,800 employees and 125,000 customers.

On behalf of the board

Mr M Timmerman
Director
4 February 2026
MELLORS CATERING SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 JULY 2025
- 4 -

The director presents his annual report and financial statements for the period ended 31 July 2025.

Principal activities

The principal activity of the company continued to be that of a contract catering group serving meals on a daily basis, predominantly into the education sector.

Results and dividends

The results for the period are set out on page 11.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

Mr M Timmerman
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Mellors Catering Services provides quality bespoke long term catering services on third party premises; predominantly primary schools, secondary schools and colleges. Energy usage and waste management on these premises sits with-in the domain of our clients. Mellors has responsibility to use these resources effectively.

To reduce use of disposables further, in this financial year the group moved to near zero use of single use sandwich boxes as we switched all our food production to bagels and baguettes served in reduced bio-degradable sleeves. This single innovation has removed 483,000 sandwiches wedges (pa) from landfill.

2025
2024
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
60,225
58,824
MELLORS CATERING SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 5 -
2025
2024
Emissions of CO2 equivalent
metric tonnes
metric tonnes
- Fuel consumed for transport not owned by the company
117.73
120.12
Total gross emissions
117.73
120.12
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

Measures taken to improve energy efficiency

Improved work practices enabled the clos ure of our regional Sheffield office this fiscal year, relocating all resources centrally to Mellors Support Office (Skelmersdale). This promotes better communications and reduced energy use.

The group’s greatest opportunity for environmental protection is the education, habit forming and attitude nudging of the 125,000 young people we serve daily. We target on-site messages and promotions to influence Mellors customers approach to purchasing, food waste, waste segregation, life-style choices, method of transport to school etc.

Statement of director's responsibilities

The director is responsible 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 company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is 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 director is 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. He is 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.

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.

MELLORS CATERING SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 6 -
On behalf of the board
Mr M Timmerman
Director
4 February 2026
MELLORS CATERING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MELLORS CATERING SERVICES LIMITED
- 7 -
Opinion

We have audited the financial statements of Mellors Catering Services Limited (the 'company') for the period ended 31 July 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 July 2025 and of its profit for the period 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's 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 financial statements are authorised for issue.

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

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 director is 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

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

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

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

MELLORS CATERING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MELLORS CATERING SERVICES LIMITED
- 8 -
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 director's 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, 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 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 company or to cease operations, or has 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

MELLORS CATERING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MELLORS CATERING SERVICES LIMITED
- 9 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

- a ny matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

  - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income; posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

- in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve: collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

MELLORS CATERING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MELLORS CATERING SERVICES LIMITED
- 10 -

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Christopher Johnson FCA
Senior Statutory Auditor
For and on behalf of PM+M Solutions for Business LLP
4 February 2026
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
MELLORS CATERING SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 JULY 2025
- 11 -
Period
Year
ended
ended
31 July
17 July
2025
2024
Notes
£
£
Turnover
4
46,441,482
47,649,313
Distribution costs
(43,943,765)
(45,590,627)
Administrative expenses
(1,200,687)
(933,297)
Exceptional item
3
(1,092,803)
-
0
Operating profit
6
204,227
1,125,389
Interest payable and similar expenses
8
(5,806)
(8,990)
Profit before taxation
198,421
1,116,399
Tax on profit
9
(54,449)
(347,756)
Profit for the financial period
143,972
768,643

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

MELLORS CATERING SERVICES LIMITED
BALANCE SHEET
AS AT
31 JULY 2025
31 July 2025
- 12 -
31 July 2025
17 July 2024
Notes
£
£
£
£
Fixed assets
Intangible assets
11
19,052
-
0
Tangible assets
12
100,831
52,010
119,883
52,010
Current assets
Stocks
13
585,951
544,860
Debtors falling due after more than one year
14
321,037
351,383
Debtors falling due within one year
14
7,738,113
9,421,824
Cash at bank and in hand
2,183,683
3,739,087
10,828,784
14,057,154
Creditors: amounts falling due within one year
15
(5,053,153)
(8,357,622)
Net current assets
5,775,631
5,699,532
Net assets
5,895,514
5,751,542
Capital and reserves
Called up share capital
18
1
1
Profit and loss reserves
5,895,513
5,751,541
Total equity
5,895,514
5,751,542
The financial statements were approved and signed by the director and authorised for issue on 4 February 2026
Mr M Timmerman
Director
Company registration number 07717083 (England and Wales)
MELLORS CATERING SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2025
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 18 July 2023
1
5,102,898
5,102,899
Year ended 17 July 2024:
Profit and total comprehensive income
-
768,643
768,643
Dividends
10
-
(120,000)
(120,000)
Balance at 17 July 2024
1
5,751,541
5,751,542
Period ended 31 July 2025:
Profit and total comprehensive income
-
143,972
143,972
Balance at 31 July 2025
1
5,895,513
5,895,514
MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2025
- 14 -
1
Accounting policies
Company information

Mellors Catering Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is West Lancs Technology Management Centre, White Moss Business Park, Moss Lane View, Skelmersdale, England, WN8 9TN.

1.1
Reporting period

During the current financial year, the company changed its reporting date from 17 July to 31 July. This change was made to better align the financial reporting cycle with operational and strategic planning timelines.

In accordance with FRS 102 Section 3.3, the company has prepared financial statements for the extended period from 18 July 2024 to 31 July 2025, resulting in a financial year of 12 months and 14 days. Comparative figures relate to the previous 12-month period ending 17 July 2024.

1.2
Accounting convention

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Mellors Consolidated Limited. These consolidated financial statements are available from its registered office, West Lancs Technology Management Centre, White Moss Business Park, Moss Lane View, Skelmersdale, United Kingdom, WN8 9TN.

1.3
Going concern

A true t the time of approving the financial statements, t he director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue is recognised when services are delivered and the company has fulfilled its contractual obligation to the customer.

MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% per annum straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
Over the life of the building lease
Motor vehicles
20 - 25% per annum straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 16 -
1.10
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.

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 and loans from fellow group companies 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.

Derecognition of financial liabilities

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

MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
1
Accounting policies
(Continued)
- 17 -
1.11
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.

1.12
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.

1.13
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.

1.14
Retirement benefits

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

1.15
Leases

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.

MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 18 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

A source of estimation uncertainty is the bad debt provision but the directors have used their historical knowledge and customer payment terms to determine the provision. The directors do not believe there to be any other critical judgements or key sources of estimation uncertainty.

3
Exceptional item
2025
2024
£
£
Expenditure
Exceptional costs
1,092,803
-

During the financial year, the company experienced an extended year-end period extending past the mandated school shutdown. This resulted in a temporary cessation of normal operations, during which the company did not generate income. A review has been carried out however to identify costs incurred in this shut down period, identifying a period of expenditure amounting to £1,092,803.

4
Turnover
2025
2024
£
£
Turnover analysed by class of business
Catering services
46,441,482
47,649,313

All turnover arose in the United Kingdom.

5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
23,100
19,200
For other services
Taxation compliance services
1,980
1,800
MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 19 -
6
Operating profit
2025
2024
Operating profit for the period is stated after charging:
£
£
Depreciation of owned tangible fixed assets
16,360
5,500
Amortisation of intangible assets
1,361
-
0
Operating lease charges
240,030
172,543
7
Employees

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

2025
2024
Number
Number
Catering services
1,657
1,758
Directors
1
2
Total
1,658
1,760

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
22,752,269
22,220,093
Social security costs
1,392,597
1,161,521
Pension costs
1,659,688
1,917,517
25,804,554
25,299,131
8
Interest payable and similar expenses
2025
2024
£
£
Other interest
5,806
8,990
MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 20 -
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
20,597
262,355
Adjustments in respect of prior periods
-
0
79,275
Total current tax
20,597
341,630
Deferred tax
Origination and reversal of timing differences
33,852
6,126
Total tax charge
54,449
347,756

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
198,421
1,116,399
Expected tax charge based on the standard rate of corporation tax in the UK of 24.78% (2024: 25.00%)
49,169
279,100
Tax effect of expenses that are not deductible in determining taxable profit
4,803
1,192
Adjustments in respect of prior years
-
0
79,275
Group relief
-
0
(11,811)
Remeasurement of deferred tax for future changes in tax rates
300
-
0
Other items
177
-
0
Taxation charge for the period
54,449
347,756
10
Dividends
2025
2024
£
£
Interim paid
-
0
120,000
MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 21 -
11
Intangible fixed assets
Software
£
Cost
At 18 July 2024
-
0
Additions
20,413
At 31 July 2025
20,413
Amortisation and impairment
At 18 July 2024
-
0
Amortisation charged for the period
1,361
At 31 July 2025
1,361
Carrying amount
At 31 July 2025
19,052
At 17 July 2024
-
0
12
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 18 July 2024
37,633
21,990
59,623
Additions
-
0
65,181
65,181
At 31 July 2025
37,633
87,171
124,804
Depreciation and impairment
At 18 July 2024
-
0
7,613
7,613
Depreciation charged in the period
8,685
7,675
16,360
At 31 July 2025
8,685
15,288
23,973
Carrying amount
At 31 July 2025
28,948
71,883
100,831
At 17 July 2024
37,633
14,377
52,010
13
Stocks
2025
2024
£
£
Raw materials and consumables
585,951
544,860
MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 22 -
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,104,039
4,548,664
Corporation tax recoverable
54,507
-
0
Amounts owed by group undertakings
3,592,455
3,052,577
Other debtors
637,821
670,814
Prepayments and accrued income
278,428
1,045,054
7,667,250
9,317,109
Deferred tax asset (note 16)
70,863
104,715
7,738,113
9,421,824
2025
2024
Amounts falling due after more than one year:
£
£
Other debtors
321,037
351,383
Total debtors
8,059,150
9,773,207

Amounts owed by fellow group undertakings are interest free and repayable on demand.

15
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
2,189,916
3,036,837
Corporation tax
-
0
262,251
Other taxation and social security
579,563
667,155
Other creditors
1,507,094
3,739,474
Accruals and deferred income
776,580
651,905
5,053,153
8,357,622
MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 23 -
16
Deferred taxation

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

Assets
Assets
2025
2024
Balances:
£
£
Accelerated capital allowances
(22,449)
(5,269)
Retirement benefit obligations
93,312
109,984
70,863
104,715
2025
Movements in the period:
£
Asset at 18 July 2024
(104,715)
Charge to profit or loss
33,852
Asset at 31 July 2025
(70,863)

An unknown amount of the deferred tax asset is expected to reverse in the 12 months following the end of the accounting period. This relates to unpaid pension contributions due to delays of pension scheme set up from councils out of the control of Mellors Catering Services Limited.

17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,659,688
1,917,517

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.

Contributions totalling £472,625 (2024: £619,626) were payable to the fund at the balance sheet date.

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
MELLORS CATERING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2025
- 24 -
19
Financial commitments, guarantees and contingent liabilities

The company h as an unlimited guarantee with Double Dutch Hotels Limited, a related party, This guarantee is secured by a fixed and floating charge held by National Westminster Bank over all fixed and current assets of the company. The outstanding borrowings at year end w ere £8.2 m.

The company is a member of a VAT group and is jointly and severally liable for any VAT debts of the group. At year end, the VAT liability of other members of the VAT group was £264,811 (2024 - £2,359).

20
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:

2025
2024
£
£
Within 1 year
202,933
221,406
Years 2-5
124,804
295,890
327,737
517,296
21
Events after the reporting date

After the reporting date, the Company secured an invoice discounting facility of £3 million. Under the terms of the agreement, the Company is able to draw down up to 80% of eligible receivables, equating to a potential immediate cash availability of £2.4 million. This facility enhances the Company’s liquidity position and provides additional working capital flexibility to support ongoing operations and growth initiatives.

22
Ultimate controlling party

The company is controlled by its parent company Mellors Consolidated Limited. The smallest and largest group of undertakings for which group accounts are drawn up and of which the company is a member is Mellors Consolidated limited. The financial statements of Mellors Consolidated Limited can be obtained from Companies House.

Mellors Consolidated Limited controls 100% of the company's issued share capital and is the direct parent company.

The ultimate controlling party of the company is Mr M Timmerman.

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