Gower View Foods Limited 31/05/2025 iXBRL

Company registration number: 05459465

Gower View Foods Limited

Financial statements

31 May 2025

Gower View Foods Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of income and retained earnings

Statement of financial position

Statement of cash flows

Notes to the financial statements

Gower View Foods Limited

Directors and other information


	Directors	Mr J Lewis
		Mr A Evans
		Mr R Davies


	Secretary	Mr R Davies


	Company number	05459465


	Registered office	Plot 3
		Heol Ty Newydd
		Cross Hands Food Park
		Cross Hands
		SA14 6RF


	Business address	Plot 3
		Heol Ty Newydd
		Cross Hands Food Park
		Cross Hands
		SA14 6RF


	Auditor	Morgan Hemp
		103-104 Walter Road
		Swansea
		SA1 5QF




	Bankers	HSBC
		15 Lammas Street
		Carmarthen
		SA31 3AQ

Gower View Foods Limited

Strategic report

Year ended 31 May 2025

Principal activity

The principal activity of the company is the manufacturing and packaging of food products.

Fair review of the business

The results for the year and financial position of the company are as shown in the annexed financial statements.

The directors are satisfied with the performance of the company during this period as the impact of the external environment which included increasing energy and commodity prices as well as high inflation rates have not affected the companies growth and profitability. The company has successfully implemented existing procedures to allow production to continue at full capacity with minimal impact to their workforce and customers. This is evident by the significant increase in turnover and profitability in the year.

Principal risks and uncertainties

The principal risk and uncertainty is the impact of the Ukraine and Russia conflict as commodity prices continue to increase. The company mitigates this risk by continuing to monitor raw material prices and the selling prices to customers.

Financial key performance indicators

The key performance indicators are set out below:

2025 2024 Variance

Turnover £30.84m £19.07m £11.77m

Gross Profit £7.41m £6.26m £1.15m

Gross Profit % 24.04% 32.81% -8.77%

Profit before tax £2.90m £2.68m £0.22m

Profit before tax % 9.41% 14.07% -4.66%

This report was approved by the board of directors on 27 May 2026 and signed on behalf of the board by:

Mr J Lewis

Director

Mr R Davies

Director

Mr A Evans

Director

Gower View Foods Limited

Directors report

Year ended 31 May 2025

The directors present their report and the financial statements of the company for the year ended 31 May 2025.

Directors

The directors who served the company during the year were as follows:

Mr J Lewis

Mr A Evans

Mr R Davies

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Future developments

The company does not expect to make any significant changes to its existing operations and will continue to invest in its manufacturing facilities to ensure maximum efficiency is achieved.

Financial instruments

The company operates a number of risk management policies designed to minimise its exposure to financial risk.

Price Risk:

The company activily manages price risk through regularly monitoring prices of raw ingredients.

Credit Risk:

The company operates a number of policies and controls to minimise credit risk. All customers are subject to a credit review prior to terms being agreed.

Liquidity and cash flow risk:

The company has detailed quarterly management accounts prepared which enables the directors to monitor the cash position to ensure there is sufficient liquidity to minimise the risk of the company being unable to pay its debts as they fall due.

Other matters

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

Directors responsibilities statement

The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgments and accounting estimates that are reasonable and prudent; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 27 May 2026 and signed on behalf of the board by:

Mr J Lewis Mr R Davies

Director Director

Mr A Evans

Director

Gower View Foods Limited

Independent auditor's report to the members of

Gower View Foods Limited

Year ended 31 May 2025

Opinion

We have audited the financial statements of Gower View Foods Limited (the 'company') for the year ended 31 May 2025 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 May 2025 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’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 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 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.

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of food standards and UK Health and Safety legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and misappropriation of assets. Audit procedures performed included:Discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;Reviewing legal fees in the year and discussing with the HR manager if there were any significant staff injuries in the year;Reviewing results of independent food audits carried out in the year by the British Retail Consortium:Identifying and reviewing journal entries to ensure that we understood the reasoning behind them and agreed that they were appropriate;Selecting a sample of transactions and tracing to documentation to establish that they are bonafide business transactions; andDesigning audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.

Mr Richard Reeves FCCA (Senior Statutory Auditor)

For and on behalf of

Morgan Hemp

Chartered Certified Accountant and Statutory Auditor

103-104 Walter Road

Swansea

SA1 5QF

28 May 2026

Gower View Foods Limited

Statement of income and retained earnings

Year ended 31 May 2025

		2025	2024
	Note	£	£


Turnover	4	30,836,315	19,065,851
Cost of sales		( 23,424,769)	( 12,809,413)
		_______	_______
Gross profit		7,411,546	6,256,438

Administrative expenses		( 5,303,891)	( 4,083,961)
Other operating income	5	812,607	551,001
		_______	_______
Operating profit	6	2,920,262	2,723,478

Other interest receivable and similar income	9	39,620	56,591
Interest payable and similar expenses	10	( 58,087)	( 96,576)
		_______	_______
Profit before taxation		2,901,795	2,683,493

Tax on profit	11	( 630,799)	( 568,769)
		_______	_______
Profit for the financial year and total comprehensive income		2,270,996	2,114,724
		_______	_______

Dividends declared and paid or payable during the year	12	( 2,000,000)	-

Retained earnings at the start of the year		7,674,384	5,559,660
		_______	_______
Retained earnings at the end of the year		7,945,380	7,674,384
		_______	_______

Gower View Foods Limited

Statement of financial position

31 May 2025

		2025		2024
	Note	£	£	£	£

Fixed assets
Intangible assets	13	2,112		2,415
Tangible assets	14	6,948,747		6,429,478
		_______		_______
			6,950,859		6,431,893

Current assets
Stocks	15	1,916,322		1,468,688
Debtors	16	3,754,348		2,207,558
Cash at bank and in hand	17	1,864,119		3,205,853
		_______		_______
		7,534,789		6,882,099
Creditors: amounts falling due
within one year	18	( 3,995,831)		( 3,110,849)
		_______		_______
Net current assets			3,538,958		3,771,250
			_______		_______
Total assets less current liabilities			10,489,817		10,203,143

Creditors: amounts falling due
after more than one year	19		( 1,271,633)		( 1,378,302)

Provisions for liabilities	20		( 867,304)		( 744,957)

			_______		_______
Net assets			8,350,880		8,079,884
			_______		_______

Capital and reserves
Called up share capital	23		1,000		1,000
Share premium account	24		404,500		404,500
Profit and loss account	24		7,945,380		7,674,384
			_______		_______
Shareholders funds			8,350,880		8,079,884
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 27 May 2026 , and are signed on behalf of the board by:

Mr J Lewis Mr R Davies

Director Director

Mr A Evans

Director

Company registration number: 05459465

Gower View Foods Limited

Statement of cash flows

Year ended 31 May 2025

	2025	2024
	£	£

Cash flows from operating activities
Profit for the financial year	2,270,996	2,114,724

Adjustments for:
Depreciation of tangible assets	275,551	272,698
Amortisation of intangible assets	303	303
Government grant income	( 33,955)	( 33,455)
Other interest receivable and similar income	( 39,620)	( 56,591)
Interest payable and similar expenses	58,087	96,576
Gain/(loss) on disposal of tangible assets	-	( 220,000)
Tax on profit	630,799	568,769
Accrued expenses/(income)	( 43,718)	142,088

Changes in:
Stocks	( 447,634)	( 576,672)
Trade and other debtors	( 1,511,253)	489,830
Trade and other creditors	753,920	( 537,758)
	_______	_______
Cash generated from operations	1,913,476	2,260,512

Interest paid	( 58,087)	( 96,576)
Interest received	39,621	56,591
Tax paid	( 359,094)	( 72,594)
	_______	_______
Net cash from operating activities	1,535,916	2,147,933
	_______	_______

Cash flows from investing activities
Purchase of tangible assets	( 794,820)	( 1,070,572)
Proceeds from sale of tangible assets	-	225,955
	_______	_______
Net cash used in investing activities	( 794,820)	( 844,617)
	_______	_______

Cash flows from financing activities
Repayments of borrowings	( 107,830)	( 229,183)
Government grant income	25,000	-
Equity dividends paid	( 2,000,000)	-
	_______	_______
Net cash used in financing activities	( 2,082,830)	( 229,183)
	_______	_______

Net increase/(decrease) in cash and cash equivalents	( 1,341,734)	1,074,133
Cash and cash equivalents at beginning of year	3,205,853	2,131,720
	_______	_______
Cash and cash equivalents at end of year	1,864,119	3,205,853
	_______	_______

Gower View Foods Limited

Notes to the financial statements

Year ended 31 May 2025

1. General information

The company is a private company limited by shares, registered in United Kingdom. The address of the registered office is Plot 3, Heol Ty Newydd, Cross Hands Food Park, Cross Hands, SA14 6RF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgments (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Useful economic lives of tangible assets The annual depreciation charge of tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed periodically.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

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


Development costs	-	20 %	straight line
Patents, trademarks and licences	-	5 %	straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the year in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Long leasehold property	-	2 %	straight line
Plant and machinery	-	10 %	reducing balance
Fittings fixtures and equipment	-	20 %	straight line
Motor vehicles	-	20 %	straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	30,836,315	19,065,851
	_______	_______

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2025	2024
	£	£
Rental income	154,163	100,350
Management charges receivable	616,317	417,196
Government grant income	33,955	33,455
Other operating income	8,172	-
	_______	_______
	812,607	551,001
	_______	_______

6. Operating profit

Operating profit is stated after charging/(crediting):

	2025	2024
	£	£
Amortisation of intangible assets	303	303
Depreciation of tangible assets	275,551	272,698
(Gain)/loss on disposal of tangible assets	-	( 220,000)
Research and development expenditure written off	671,670	433,430
Fees payable for the audit of the financial statements	13,944	16,000
	_______	_______

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2025	2024
Production staff	81	63
Administrative staff	13	11
	_______	_______
	94	74
	_______	_______

The aggregate payroll costs incurred during the year were:

	2025	2024
	£	£
Wages and salaries	2,359,417	1,961,341
Social security costs	267,646	210,757
Other pension costs	64,729	46,190
	_______	_______
	2,691,792	2,218,288
	_______	_______

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	165,000	99,403
	_______	_______

9. Other interest receivable and similar income

	2025	2024
	£	£
Other interest receivable and similar income	39,620	56,591
	_______	_______

10. Interest payable and similar expenses

		2025	2024
		£	£
Bank loans and overdrafts		1,316	10
Other loans made to the company:
	Other interest on other loans made to the company	56,771	96,566
		_______	_______
		58,087	96,576
		_______	_______

11. Tax on profit

Major components of tax expense

	2025	2024
	£	£
Current tax:
UK current tax expense	508,452	359,094
	_______	_______

Deferred tax:
Origination and reversal of timing differences	122,347	209,675
	_______	_______
Tax on profit	630,799	568,769
	_______	_______

Reconciliation of tax expense

The tax assessed on the profit for the year is lower than (2024: lower than) the standard rate of corporation tax in the UK of 25.00 % (2024: 25.00%).

	2025	2024
	£	£
Profit before taxation	2,901,795	2,683,493
	_______	_______

Profit multiplied by rate of tax	725,449	670,873
Effect of expenses not deductible for tax purposes	392	923
Effect of capital allowances and depreciation	( 542)	5,330
Effect of revenue exempt from tax	6,250	-
R & D Enhanced Relief	( 100,750)	( 108,357)
	_______	_______
Tax on profit	630,799	568,769
	_______	_______

12. Dividends

Equity dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year)	2,000,000	-
	_______	_______

13. Intangible assets

	Development costs	Patents, trademarks & licences	Total
	£	£	£
Cost
At 1 June 2024 and 31 May 2025	286,336	6,050	292,386
	_______	_______	_______
Amortisation
At 1 June 2024	286,336	3,635	289,971
Charge for the year	-	303	303
	_______	_______	_______
At 31 May 2025	286,336	3,938	290,274
	_______	_______	_______
Carrying amount
At 31 May 2025	-	2,112	2,112
	_______	_______	_______
At 31 May 2024	-	2,415	2,415
	_______	_______	_______

14. Tangible assets

	Long leasehold property	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 June 2024	3,231,553	5,241,211	53,145	18,995	8,544,904
Additions	62,133	727,114	5,573	-	794,820
	_______	_______	_______	_______	_______
At 31 May 2025	3,293,686	5,968,325	58,718	18,995	9,339,724
	_______	_______	_______	_______	_______
Depreciation
At 1 June 2024	62,794	1,991,645	41,993	18,995	2,115,427
Charge for the year	5,937	266,544	3,069	-	275,550
	_______	_______	_______	_______	_______
At 31 May 2025	68,731	2,258,189	45,062	18,995	2,390,977
	_______	_______	_______	_______	_______
Carrying amount
At 31 May 2025	3,224,955	3,710,136	13,656	-	6,948,747
	_______	_______	_______	_______	_______
At 31 May 2024	3,168,759	3,249,566	11,152	-	6,429,477
	_______	_______	_______	_______	_______

15. Stocks

	2025	2024
	£	£
Finished goods	1,916,322	1,468,688
	_______	_______

16. Debtors

	2025	2024
	£	£
Trade debtors	3,480,236	2,058,748
Prepayments and accrued income	146,915	104,135
Other debtors	127,197	44,675
	_______	_______
	3,754,348	2,207,558
	_______	_______

17. Cash and cash equivalents

	2025	2024
	£	£
Cash at bank and in hand	1,864,119	3,205,853
	_______	_______

18. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	109,739	109,739
Trade creditors	2,942,696	1,342,161
Accruals and deferred income	365,501	373,681
Corporation tax	508,452	359,094
Social security and other taxes	68,226	52,521
Director loan accounts	-	10,116
Other creditors	1,217	863,537
	_______	_______
	3,995,831	3,110,849
	_______	_______

19. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans and overdrafts	668,491	766,205
Accruals and deferred income	603,142	612,097
	_______	_______
	1,271,633	1,378,302
	_______	_______

20. Provisions

	Deferred tax (note 21)	Total
	£	£
At 1 June 2024	744,957	744,957
Additions	122,347	122,347
	_______	_______
At 31 May 2025	867,304	867,304
	_______	_______

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2025	2024
	£	£
Included in provisions (note 20)	867,304	744,957
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	867,304	744,957
	_______	_______

22. Government grants

	2025	2024
	£	£
At start of period	645,552	679,007
Grants received or receivable	25,000	(-)
Released to the profit or loss	(33,955)	(33,455)
	_______	_______
At end of year	636,597	645,552
	_______	_______

The amounts recognised in the financial statements for government grants are as follows:

	2025	2024
	£	£
Recognised in creditors:
Deferred government grants due within one year	33,455	33,455
Deferred government grants due after more than one year	603,142	612,097
	_______	_______
	636,597	645,552
	_______	_______
Recognised in other operating income:
Government grants released to profit or loss	33,955	33,455
	_______	_______

23. Called up share capital

Issued, called up and fully paid

	2025		2024
	No	£	No	£
Ordinary shares of £ 1.00 each	1,000	1,000	1,000	1,000
	_______	_______	_______	_______

24. Reserves

Profit and loss account:This reserve records retained earnings and accumulated losses.Share premium account:This reserve records the amount above the nominal value received for shares sold.

25. Analysis of changes in net debt

	At 1 June 2024	Cash flows	At 31 May 2025
	£	£	£
Cash and cash equivalents	3,205,853	(1,341,734)	1,864,119
Debt due within one year	(949,942)	10,116	(939,826)
Debt due after one year	(766,205)	97,714	(668,491)
	_______	_______	_______
	1,489,706	( 1,233,904)	255,802
	_______	_______	_______

26. Operating leases

The company as lessee

The total future minimum lease payments under non-cancellable operating leases are as follows:


	£	£

Not later than 1 year	1,417	13,800
Later than 1 year and not later than 5 years	121,987	17,560
	_______	_______
	123,404	31,360
	_______	_______

27. Contingent assets and liabilities

HSBC Bank PLC holds a legal charge over the leasehold property known as Plot 1.3 Cross Hands Food Park, Llanelli.

28. Related party transactions

Included in debtors is a balance owed from Skyr (Wales) Ltd of £467,330 (2024: £207,346).Included in creditors at the year ended 31st May 2025, is a balance owed to the directors of £nil (2024: £10,116) and a balance owed to Skyr (Wales) Ltd of £5,587 (2024: £2,813).Also, included in creditors is an amount owed to the connected company Andrew Evans Painting Contractors Ltd of £nil (2024: £862,217). During the year assets costing £nil (2024: £11,500) were purchased from a business connected to a director.During the year interest of £nil (2024 £2,821) was paid to the directors and £3,904 (2024: £32,130) of interest was paid to companies connected to the directors.