Company No:
Contents
| DIRECTORS | J Brigham |
| G N Kingston |
| SECRETARY | Nunns Accounting Services Ltd |
| REGISTERED OFFICE | F7 First Floor Lincoln House Lincoln Way |
| Ashbrooke Park | |
| Sherburn In Elmet | |
| Leeds | |
| LS25 6PJ | |
| United Kingdom |
| COMPANY NUMBER | 02704966 (England and Wales) |
| AUDITOR | Tuerner Audit Limited |
| Statutory Auditor | |
| Bridge House | |
| Old Grantham Road | |
| Whatton | |
| Nottingham | |
| NG13 9FG |
The directors present their Strategic Report for the financial year ended 30 September 2025.
We are an innovative confectionary manufacturer, employing over 100 people, with a particular emphasis in the food inclusions industry. The company operates from premises in the heart of Yorkshire. As well as traditional confectionary (toffees & fudges) we produce innovative specialist inclusions in bakery, specialist nuts, blends & sauces and various chocolate products and shapes.
REVIEW OF THE BUSINESS
As global inclusion specialists our market is seen as worldwide. Our customer base is strong in Europe and we see increased demand in the UK following our exit from the EU. Emerging markets such as the Middle East & South Africa which are potential high growth areas for our products as much as new businesses across Europe. Pecan Deluxe Candy Co. based in Dallas, Texas, USA, is our parent company and has over 60 years of experience in the industry. We continue to invest in and promote E-commerce and wholesale channels in addition to the traditional B2B and Foodservice Sectors to expand our offering into the independent sector. Our business has been built on service and innovation. We continue to invest in Research & Development which has helped us mastermind some of the most famous ice cream inclusions and capture the imagination of many in the food service industry. Our customer base includes well known High Street brands and quick service restaurants which we supply with a variety of tasty and textured products. We believe that these customers will continue to search for new ideas and products as there is a growing trend for holistic foods. With our reputation as a tailor and inclusions specialist, customers come to us looking for solutions and to help differentiate and add value to new ideas they are trying to bring to the market; for today's changing nutritional and health requirements.
PRINCIPAL RISKS AND UNCERTAINTIES
Operating in a global market and in particular with Europe, there continues to be more uncertainty following 'Brexit' the impact of Covid (lead times/labour) the wars in Ukraine (raw material costs) and Gaza. The effect currency exchange rates may have a bearing as we price in Euros to our European customers. Commodity prices will also continue to vary (butter, flour, sugar, eggs, oil, chocolate) according to the worldwide economies and uncertainties. We have adapted to the new market conditions creating product solutions that require no health certification, and also worked to provide an effective DDP solution for European customers which will speed up the export process. Our European customers are also looking to migrate their own risks of Brexit/War by looking to alternative supply options and other EU based manufacturers. Importantly labour costs and raw material lead times will be our biggest barriers to growth as the availability of suitably trained employees and raw material access may impact lead times. The current global tariff stand-off could result in beneficial opportunities on raw material prices as well as new customer opportunities for companies currently sourcing competitor products from the US. The ongoing trend towards calorie deficit as a result of GLP-1 drug availability will affect the business in the short term.
OBJECTIVES
Our objectives are simple. We will continue to grow our turnover, profitability and customer base to give our shareholders maximum return and place ourselves as market leaders in product quality and innovation. We aim to provide our customers with value added and affordable solutions and provide guidance and advice on ingredients, product integration and presentation.
FUTURE
We are confident that we will continue to increase our sales and profitability. In the last year we have worked on improving our production methods, and continue to try and spread our sales by developing markets in coffee chains, restaurant chains, chilled desserts and bakery products, not only in Europe but also in the expanding markets of South Africa, Middle East and Western parts of Asia. Our R&D department is constantly looking for new ways to advance the scope of our praline inclusions, creating new flavours and applications such as chocolate, bakery products and snack mixes. We also see a growing opportunity in independent dessert parlours and are now servicing these through a combination of E-commerce and wholesale over coming years. Contract manufacture of various Boba concepts will add depth to the range and open opportunities within the beverage category in addition to traditional channels. The business will also ensure the most profitable utilisation of all its available capacities and production capabilities through strategic category development teams and commercial offers.
Approved by the Board of Directors and signed on its behalf by:
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Graham Nicholas Kingston
Director |
The directors present their annual report on the affairs of the company, together with the financial statements and auditors’ report, for the financial year ended 30 September 2025.
DIVIDENDS
No dividend was paid for the current financial year (2024: £Nil).
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that financial period.
In preparing these financial statements, the directors are 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 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. The directors 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 the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Approved by the Board of Directors and signed on its behalf by:
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Graham Nicholas Kingston
Director |
We have audited the financial statements of Pecan Deluxe Candy (Europe) Limited for the financial year ended 30 September 2025, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows, the accounting policies, and the related notes 1 to 17, 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 of Pecan Deluxe Candy (Europe) Limited (the ‘company’):
* Give a true and fair view of the state of the company's affairs as at 30 September 2025 and of its profit for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)). 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 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 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 Directors' Report has been prepared in accordance with applicable legal requirements.
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 and the Directors' Report. 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 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework(s) that the company operates in, and identified the key laws and regulations that:
* had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the sector it operates in e.g. UK Companies Act, pensions legislation, tax legislation and related party legislation; and
* do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. 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.
In addition to the above, our procedures to respond to the risks identified included the following:
* reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
* performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
* enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations.
Owing to the inherent limitations of an audit, there is unavoidable risk that we may not have detected some material misstatements in the financial statements. For example, the further removed non-compliance with laws and regulations 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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Statutory Auditor
Old Grantham Road
Whatton
Nottingham
NG13 9FG
| Note | 2025 | 2024 | ||
| £ | £ | |||
| Turnover | 2 |
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| Cost of sales | (
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| Gross profit |
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| Administrative expenses | (
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| Other operating income |
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| Operating profit |
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| Interest payable and similar expenses | 3 | (
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| Profit before taxation | 4 |
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| Tax on profit | 7 | (
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| Profit for the financial year |
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| Retained earnings at the beginning of financial year |
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| Profit for the financial year |
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| Retained earnings at the end of financial year |
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| Note | 2025 | 2024 | ||
| £ | £ | |||
| Fixed assets | ||||
| Tangible assets | 8 |
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| 5,111,565 | 5,301,291 | |||
| Current assets | ||||
| Stocks | 9 |
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| Debtors | 10 |
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| Cash at bank and in hand |
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| 5,800,122 | 4,325,218 | |||
| Creditors: amounts falling due within one year | 11 | (
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| Net current assets | 1,570,091 | 674,007 | ||
| Total assets less current liabilities | 6,681,656 | 5,975,298 | ||
| Creditors: amounts falling due after more than one year | 12 | (
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| Provision for liabilities | 13 | (
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| Net assets | 3,616,047 | 3,067,343 | ||
| Capital and reserves | 14 | |||
| Called-up share capital |
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| Share premium account |
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| Profit and loss account |
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| Total shareholders' funds | 3,616,047 | 3,067,343 |
The financial statements of Pecan Deluxe Candy (Europe) Limited (registered number:
|
Graham Nicholas Kingston
Director |
| 2025 | 2024 | ||
| £ | £ | ||
| Net cash flows from operating activities (note 16) |
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| Cash flows from investing activities | |||
| Proceeds from sale of plant and machinery |
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| Purchase of plant and machinery | (
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| Net cash flows from investing activities | (
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| Cash flows from financing activities | |||
| Repayments of borrowings |
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(
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| Finance received in the year | 228,400 | 0 | |
| Net cash flows from financing activities |
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| Net increase in cash and cash equivalents |
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| Cash and cash equivalents at beginning of year |
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| Cash and cash equivalents at end of year |
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| Reconciliation to cash at bank and in hand: | |||
| Cash at bank and in hand at end of year |
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| Cash and cash equivalents at end of year |
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Pecan Deluxe Candy (Europe) Limited (the company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the company's registered office is F7 First Floor Lincoln House Lincoln Way, Ashbrooke Park, Sherburn In Elmet, Leeds, LS25 6PJ, United Kingdom.
The principal activities are set out in the Strategic Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
Revenue from the sale of goods is recognised when the goods are despatched to the customer.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
| Leasehold improvements |
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| Plant and machinery etc. |
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The company as lessee
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.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
Breakdown by geographical market:
An analysis of the company's turnover by geographical market is set out below.
| 2025 | 2024 | ||
| £ | £ | ||
| United Kingdom | 8,153,329 | 6,803,191 | |
| Rest of World | 13,255,575 | 10,013,077 | |
| 21,408,904 | 16,816,268 |
| 2025 | 2024 | ||
| £ | £ | ||
| Interest payable and similar expenses |
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Profit before taxation is stated after charging/(crediting):
| 2025 | 2024 | ||
| £ | £ | ||
| Depreciation of tangible fixed assets (note 8) |
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| Operating lease rentals |
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| Foreign exchange losses/(gains) |
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| Gain on disposal of fixed assets |
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| Auditors' remuneration |
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| Hire of plant and machinery |
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| 2025 | 2024 | ||
| Number | Number | ||
| The average monthly number of employees (including directors) was: | |||
| Production staff |
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| Administrative staff |
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Their aggregate remuneration comprised:
| 2025 | 2024 | ||
| £ | £ | ||
| Wages and salaries |
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| Social security costs |
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| Other retirement benefit costs |
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| 6,430,149 | 5,075,907 |
| 2025 | 2024 | ||
| £ | £ | ||
| Directors' emoluments |
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Remuneration of the highest paid director
| 2025 | 2024 | ||
| £ | £ | ||
| Director's emoluments | 211,545 | 200,000 | |
| Company contributions to money purchase schemes | 1,321 | 9,289 | |
| 212,866 | 209,289 |
| 2025 | 2024 | ||
| £ | £ | ||
| Current tax on profit | |||
| UK corporation tax |
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| Total current tax |
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| Deferred tax | |||
| Increase/(decrease) in deferred tax liability due to accelerated capital allowances | 15,482 | (53,140) | |
| Increase in deferred tax liability due to reversal of deferred tax asset as a result of utilisation of tax losses and other timing differences | 69,010 | 187,677 | |
| Total deferred tax |
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| Total tax on profit |
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| Leasehold improve- ments |
Plant and machinery etc. | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 01 October 2024 |
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| Additions |
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| At 30 September 2025 |
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| Accumulated depreciation | |||||
| At 01 October 2024 |
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| Charge for the financial year |
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| At 30 September 2025 |
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| Net book value | |||||
| At 30 September 2025 | 3,271,832 | 1,839,733 | 5,111,565 | ||
| At 30 September 2024 | 3,376,306 | 1,924,985 | 5,301,291 |
| 2025 | 2024 | ||
| £ | £ | ||
| Raw materials |
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| Work in progress |
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| Finished goods |
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| 2025 | 2024 | ||
| £ | £ | ||
| Trade debtors |
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| VAT recoverable |
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| Other debtors |
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| Prepayments |
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| 2025 | 2024 | ||
| £ | £ | ||
| Other loans |
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| Trade creditors |
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| Amounts owed to group undertakings |
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| Taxation and social security |
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| Accruals |
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| Non-cumulative redeemable preference shares |
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| Other creditors |
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| 2025 | 2024 | ||
| £ | £ | ||
| Amounts owed to group undertakings |
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| Deferred taxation | Total | ||
| £ | £ | ||
| At 01 October 2024 |
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194,586 | |
| Charged to the Statement of Income and Retained Earnings |
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84,492 | |
| At 30 September 2025 |
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279,078 | |
Deferred tax
| 2025 | 2024 | ||
| £ | £ | ||
| Accelerated capital allowances |
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| Tax losses available |
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| Other timing differences | (
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| Provision for deferred tax |
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| 2025 | 2024 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
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| 2,835,000 | 2,835,000 | ||
| Presented as follows: | |||
| Called-up share capital presented as equity | 1,235,000 | 1,235,000 | |
| Called-up share capital presented as liability | 1,600,000 | 1,600,000 | |
| 2,835,000 | 2,835,000 |
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2025 | 2024 | ||
| £ | £ | ||
| within one year |
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| between one and five years |
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| Total future minimum lease payments under non-cancellable operating leases |
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The amount of operating lease payments recognised as an expense in the year was £256,596 (2024: £246,647)
| 2025 | 2024 | ||
| £ | £ | ||
| Operating profit |
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| Adjustment for: | |||
| Depreciation and amortisation |
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| Profit on sale of plant and equipment |
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(
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| Foreign exchange movement | (
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| Operating cash flows before movement in working capital |
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| Decrease in stocks |
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| Increase in debtors | (
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| Increase in creditors |
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| Cash generated by operations |
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| Income taxes received |
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| Interest paid | (
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| Net cash flows from operating activities |
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Pecan Deluxe Candy Company (incorporated in United States of America) is regarded by the directors as being the company's ultimate parent company.