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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
COMPANY INFORMATION
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ORIENTAL FOOD EXPRESS LIMITED
CONTENTS
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ORIENTAL FOOD EXPRESS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their strategic report for the financial year ended 31 December 2025. This provides a comprehensive overview of our Group's performance, market position, and future outlook. As the UK's premier manufacturer and distributor of traditional Chinese cuisine, including a wide range of dumplings, hot-pot meat slices, Siu Loong Buns, and Dim Sum, our commitment remains steadfast in championing high-quality Chinese food. This report reflects on our achievements, financial health, and strategic initiatives undertaken during the year, setting the course for continued growth and innovation.
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ORIENTAL FOOD EXPRESS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Group generated turnover of approximately £13.7 million during the year and recorded a loss in excess of £0.5 million.
The financial result reflects a combination of external cost pressures and internal strategic decisions taken during the year. Raw material costs increased significantly, particularly fresh beef and lamb, with purchase prices rising approximately 50% and 40% respectively compared with the prior year. These increases materially impacted gross margins. Labour and energy costs also remained elevated throughout the period. In addition, during part of the year, the Group adopted pricing and market positioning strategies that prioritised volume stability and customer retention over short-term margin protection. In the context of rising input costs, this approach contributed to margin compression. Current assets and liabilities: Our current assets have declined from £6.6 million to £5.3 million. Concurrently, there has been a decline in our current liabilities, which have decreased from £1.2 million in 2024 to £1.08 million this year. Our net current assets have declined to £4.3 million from £5.4 million in 2024. Cash position: The Group's cash position has declined from £2.6 million in the bank at the end of 2024 to £1.17m at the end of this year. Reserves: The Group's reserves have decreased from £3.5 million in 2024 to £3 million this year. Governance review and board oversight During 2025, the Group experienced a period of management transition and strategic realignment, including changes in executive leadership toward the latter part of the year. In light of the financial outcome and operational developments during the year, the Board initiated a structured governance and oversight review prior to the finalisation of these financial statements. The review considered, among other matters: • pricing decision processes and cost-to-price alignment; • margin monitoring procedures; • contract approval thresholds for lower-margin or margin-sensitive business; • management reporting consistency and Board-level visibility of trading performance; • clarity of delineation between executive authority and Board oversight. The review identified that, during part of the year, pricing decisions were implemented with a primary objective of maintaining market presence and volume stability in a competitive environment. In the context of significantly rising input costs, this approach contributed to margin compression. In addition, the review determined that certain decision-making processes did not operate with the level of Board oversight that is now considered appropriate for the size and complexity of the Group. The Board further concluded that, notwithstanding these governance and oversight observations, the underlying accounting records remain reliable and no material misstatement has been identified in the financial statements. Corrective measures were initiated in December 2025 and have continued thereafter. These include: • progressive alignment of selling prices with prevailing market and cost conditions; • strengthened Board-level review of pricing adjustments; • formalised margin approval controls for lower-margin contracts; • enhanced monthly management reporting and cost tracking procedures; • clearer delineation of executive and Board-level responsibilities.
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ORIENTAL FOOD EXPRESS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Board considers that these measures materially strengthen the control environment going forward and support improved financial oversight.
Trading improvement and corrective measures From Q4 2025, selling prices were progressively aligned with prevailing market conditions and cost movements. The Company also reviewed its order mix and reduced exposure to margin-dilutive contracts. December 2025 trading performance showed a return to monthly profitability, reflecting the impact of these corrective measures. The Board views the 2025 loss as arising from a combination of exceptional cost volatility and a period of strategic transition, rather than from structural operational weakness. Capital development During the year, the Group incurred preparatory expenditure relating to the Oswestry development project, including site clearance, planning and professional costs. The project remains subject to construction progression and funding conditions, with further development anticipated during 2026.
The Group navigated a complex landscape of risks and uncertainties, many of which were continuations or evolutions of challenges faced in the previous year.
Geo-political tensions: The persisting war between Russia and Ukraine has had a cascading effect on global markets, including ours. These tensions contribute to uncertainties in international trade, affecting both procurement and distribution. Currency fluctuation and inflation: As a Group operating in multiple markets and dealing with international transactions, currency fluctuation remains a key risk. Coupled with this, the prevailing high inflation rates have further compounded financial planning challenges, impacting cost management and pricing strategies. Supply chain and logistics: Our reliance on imports for sourcing food products, coupled with our extensive distribution network across the UK and Europe, exposes us to risks associated with high internal shipment costs. These costs are subject to fluctuations due to fuel prices, logistical bottlenecks, and regulatory changes in cross-border trade. Market competition and consumer trends: The competitive landscape in the food industry, especially in traditional Chinese cuisine, is dynamic. Staying ahead requires constant innovation and adaptation to changing consumer preferences. Our ability to anticipate and respond to these trends is crucial for maintaining market position. In addressing these risks, the Group continues to implement robust risk management strategies, including diversifying supply chains and closely monitoring market and geopolitical developments. Our focus remains on building resilience and flexibility into our operations to navigate these uncertainties effectively.
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ORIENTAL FOOD EXPRESS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
We monitor several Key Performance Indicators (KPIs) to evaluate our business performance and guide strategic decisions. These KPIs reflect our financial health, operational efficiency, and market position.
Turnover growth: We achieved a turnover growth of 8%, increasing from £12.7 million in 2024 to £13.7 million this year. This growth is indicative of the effective market penetration and the increasing demand for our products. Current ratio: Our current ratio saw a slight decline, from 5.53 in 2024 to 4.97 this year. This demonstrates a stronger liquidity position, highlighting our enhanced capability to meet short-term obligations. Debtors days: The debtors days increased to 50 in 2025, up from 45 in the previous year. This metric suggests a longer time frame in collecting receivables, a point we aim to address to improve cash flow efficiency. Gross profit margin: There was a notable decline in our gross profit margin, which is down to 19% from 29% in 2024. The KPIs for this year showcase the Group's performance in a challenging market environment. The growth in turnover, coupled with improvements in liquidity, and gross profit margin, underscores our strategic success. However, the increase in debtors’ days is an area we are focusing on for improvement. Overall, these indicators are crucial in guiding our business strategies and ensuring sustained growth and profitability.
This report was approved by the board and signed on its behalf.
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ORIENTAL FOOD EXPRESS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Following the governance review described above, the Directors confirm that, to the best of their knowledge, the financial statements give a true and fair view of the Group’s affairs as at 31 December 2025.
The loss for the year, after taxation, amounted to £545,699 (2024 - profit £784,846).
The directors who served during the year were:
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ORIENTAL FOOD EXPRESS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
As we look forward to 2026 and beyond, the Group is poised to embark on several exciting developments that will steer the company towards greater success and market leadership.
Expansion: Our primary objective will be to expand our market share in the existing markets. This will be achieved through targeted marketing strategies, strengthening relationships with key retailers and distributors, and exploring untapped segments within these markets. This expansion will be strategically targeted, focusing on regions with a growing appetite for traditional Chinese cuisine. Product innovation and diversification: We will continue to innovate and diversify our product range to meet the evolving needs of our consumers. This includes the introduction of new flavours and varieties, as well as adapting to dietary trends and preferences, ensuring we remain at the forefront of the traditional Chinese cuisine market. Sustainability initiatives: Sustainability will remain a key focus area. We will endeavour to implement more sustainable practices in sourcing, production, and packaging, reinforcing our commitment to environmental responsibility and ethical business practices. Supply chain optimisation: We plan to further optimise our supply chain to improve operational efficiency and reduce costs. This includes refining logistics, exploring cost-effective sourcing options, and utilising advanced supply chain management technologies. Investment in people and culture: Recognising the value of our workforce, we will continue to invest in our people through training, development, and creating a culture that fosters innovation and inclusivity. This will enable us to maintain a high level of service and quality in our offerings. By focusing on these key areas, the Group aims to strengthen its position in the current markets, ensuring long-term growth and sustainability. These initiatives are aligned with our commitment to delivering exceptional quality and service, maintaining our status as a leading provider of traditional Chinese cuisine in our operational markets.
The auditors, Accendo Consulting Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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ORIENTAL FOOD EXPRESS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
This report was approved by the board and signed on its behalf.
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ORIENTAL FOOD EXPRESS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED
We have audited the financial statements of Oriental Food Express Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated Analysis of Net Debt, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent 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 directors with respect to going concern are described in the relevant sections of this report.
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ORIENTAL FOOD EXPRESS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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ORIENTAL FOOD EXPRESS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)
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ORIENTAL FOOD EXPRESS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
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.
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 considered the following: • The nature of the industry and sector, control environment and business performance including the design of the Group’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 and any matters we identified having reviewed the Group’s policies and procedures; • 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. 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 relation to revenue recognition. 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 Group operates in and focused on 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 the Companies Act 2006 and local tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material fine or penalty. Audit response to risks identified As a result of performing the above, we identified revenue recognition as a key audit matter related to the potential risk of fraud. 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;
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ORIENTAL FOOD EXPRESS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)
• 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; • obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of tax provisions; and • in addressing the risk 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. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Certified Accountants & Statutory Auditors
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ORIENTAL FOOD EXPRESS LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
REGISTERED NUMBER: 07627748
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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ORIENTAL FOOD EXPRESS LIMITED
REGISTERED NUMBER: 07627748
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2025
The notes on pages 26 to 48 form part of these financial statements.
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ORIENTAL FOOD EXPRESS LIMITED
REGISTERED NUMBER: 07627748
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
REGISTERED NUMBER: 07627748
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 26 to 48 form part of these financial statements.
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ORIENTAL FOOD EXPRESS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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ORIENTAL FOOD EXPRESS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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ORIENTAL FOOD EXPRESS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
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ORIENTAL FOOD EXPRESS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Oriental Food Express Ltd is a private company limited by shares, registered in England and Wales under the company registration number 07627748. Our registered office, which also serves as our principal place of business, is located at Unit 9 Shropshire Food Centre, Vanguard Way Battlefield Enterprise Park, Shrewsbury, Shropshire, SY1 3TG. This location serves as the central hub for our operations and administrative activities.
The company's principal activity is centred around the production of meat and poultry meat products. Oriental Food Express Ltd specialises in the creation of high-quality, traditional Chinese cuisine, with a particular focus on a range of meat and poultry-based products. Our offerings include an array of items that cater to diverse tastes and dietary preferences, reflecting our commitment to culinary excellence and innovation.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
In preparing the financial statements, the Directors have considered the ability of the Group to continue in operational existence for the foreseeable future. After a thorough review of the Group's financial position and prospects, the Directors are satisfied that the Group has the necessary resources to continue in operational existence for the foreseeable future. This assessment encompasses the following considerations:
Cash flow projections: The Directors have reviewed the Group's cash flow projections for the next 12 months. These projections indicate that for the foreseeable future the Group is expected to maintain sufficient liquidity to meet its obligations as they fall due. Market stability and growth prospects: Despite facing external challenges such as market fluctuations and global economic uncertainties, the Group has maintained a stable market position. The focus on expanding market share in existing markets and continued product innovation supports the Group's growth prospects. Risk management: The Directors have also considered the principal risks and uncertainties facing the Group, including the impact of global economic factors. Appropriate risk management strategies are in place to address these challenges and safeguard the Group's future operations. Based on these considerations, the Directors believe that it is appropriate to prepare the financial statements on a going concern basis. This assessment assumes that the Group will continue to realise its assets and discharge its liabilities in the normal course of business. The Directors will continue to monitor the Group's financial position and performance, adapting their strategies as necessary to ensure the ongoing viability of the Group.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Useful economic lives of tangible fixed assets: The estimation of the useful economic lives of tangible fixed assets is a critical judgment area. This estimation affects the calculation of depreciation and, consequently, the carrying amount of the assets. The determination of these useful lives is based on historical experience with similar assets, as well as expectations about future use and technological advancements that may influence their economic utility. The estimated useful life of each asset category is reviewed annually and adjusted if necessary, considering factors such as usage, maintenance practices, technological advancements, and changes in market conditions. Depreciation methods and residual values: The chosen methods of depreciation and the estimation of residual values at the end of the useful lives of assets are also significant judgments. These estimates are based on experience and knowledge of the assets, considering the nature of the operations and the practices in our industry. Impairment of assets: Judgements and estimates are also made in assessing whether there are any indications that an asset may be impaired. This involves considering changes in market conditions, technological advancements, or underperformance of the asset against expectations. Where indicators of impairment are identified, the recoverable amount of the asset is estimated, which requires significant judgement and estimation. It is important to note that while these judgments and estimates are based on management's best knowledge of current events and actions, actual results may differ from these estimates. Any changes in key assumptions about the economic lives of tangible fixed assets and their residual values could impact the depreciation charge and the carrying amount of the assets. The Directors regularly review and update these estimates and judgments based on the latest available information and historical experience.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Analysis of turnover by country of destination:
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
11.Taxation (continued)
There were no factors that may affect future tax charges.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Tangible fixed assets (continued)
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Tangible fixed assets (continued)
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
20.Deferred taxation (continued)
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £51,291 (2024: £41,185). Contributions totalling £11,185 (2024: £8,820) were payable to the fund at the reporting date and are included in creditors.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
As at the year end the company owed its directors £Nil (2024: £Nil).
The controlling party is Anjoy Foods Group Co., Ltd.
The company is a subsidiary of Anjoy Foods Group Co., Ltd. The financial statements of the company are included in the consolidated financial statements of its parent company, Anjoy Foods Group Co., Ltd. The parent company’s registered office is: 2508, Xinyang Road, Haicang District, Xiamen, Fujian, China.
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ORIENTAL FOOD EXPRESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The following were subsidiary undertakings of the Company:
1. Good News International Trading Europe B.V. Incorporated in the Netherlands Registered office: Koningin Julianaplein 10, 2595 AA 's-Gravenhage, The Netherlands. Class of shares: Ordinary Holding: 100% Aggregate of share capital and reserves: (£121,885) Profit/(Loss): (£33,308). 2. Good News International Trading Ltd Incorporated in England and Wales Registered office: Unit 1, Ubique Business Park March Way, Battlefield Enterprise Park, Shrewsbury, England, SY1 3JE. Class of shares: Ordinary Holding: 100% Aggregate of share capital and reserves: £100 Profit/(Loss): £Nil. Good News International Trading Ltd was dormant and it was dissolved on 4 November 2025.
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