Registered number: 02716900
FOR THE YEAR ENDED 31 OCTOBER 2025
UNDERWOOD MEAT COMPANY LIMITED
COMPANY INFORMATION
UNDERWOOD MEAT COMPANY LIMITED
CONTENTS
UNDERWOOD MEAT COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors present the strategic report for the year ended 31 October 2025.
The Company is predominantly a catering butcher, processing and supplying portion control and bespoke meat to the food service industry nationally, while continuing to develop its own range of retail outlets.
Year on year turnover fell from £60.3m to £56.9m (-5.9%), with a decrease in overall GPM% (15.6% vs prior year 15.9%). Distribution and administrative costs saw a 2.5% reduction as cost saving initiatives were implemented to mitigate the multiple headwinds. This resulted in an operating profit of £271k vs prior year £773k (decrease of £502k).
This year the Company faced unprecedented cost increases in base proteins (30%+), which impacted the business negatively, resulting in unexpected costs increases of approximately £150k per month.
Capital investment continued to be carefully managed, with the Company investing in its production capabilities and an ongoing fleet refresh. Significant increases to national minimum wage in April 2025 and national insurance increases were strongly felt by the Company. This was mitigated by operational restructures and cost saving initiatives.
With ongoing financial, customer and supplier support / negotiation, our final month of the financial year resulted in a more reasonable profit, which primarily occurred due to a degree of market stability, giving the business a more solid platform moving into the new financial year.
The Directors are clearly disappointed with the overall result of a PBT loss of £146k vs a prior year profit of £416k (-£562k). While this has been a more turbulent year than initially forecast, we are confident that a return to profitability will occur in the next financial year.
This report has been prepared based upon known information available to the directors as at the review date.
Year on year turnover fell from £60.3m to £56.9m (-5.9%), with a decrease in overall GPM% (15.6% vs prior year 15.9%). Distribution and administrative costs saw a 2.5% reduction as cost saving initiatives were implemented to mitigate the multiple headwinds. This resulted in an operating profit of £271k vs prior year £773k (decrease of £502k).
This year the Company faced unprecedented cost increases in base proteins (30%+), which impacted the business negatively, resulting in unexpected costs increases of approximately £150k per month.
Capital investment continued to be carefully managed, with the Company investing in its production capabilities and an ongoing fleet refresh. Significant increases to national minimum wage in April 2025 and national insurance increases were strongly felt by the Company. This was mitigated by operational restructures and cost saving initiatives.
With ongoing financial, customer and supplier support / negotiation, our final month of the financial year resulted in a more reasonable profit, which primarily occurred due to a degree of market stability, giving the business a more solid platform moving into the new financial year.
The Directors are clearly disappointed with the overall result of a PBT loss of £146k vs a prior year profit of £416k (-£562k). While this has been a more turbulent year than initially forecast, we are confident that a return to profitability will occur in the next financial year.
This report has been prepared based upon known information available to the directors as at the review date.
The Company continues to face competitive pressures and operates in the wider difficult economic climate.
Market conditions - the economy continued to be impacted heavily by inflationary pressures, impacting directly on consumer discretionary income, hitting the foodservice sector and its supply chain.
Liquidity risk – the Company’s policy on liquidity risk is to ensure that sufficient cash is available to fund ongoing operations. Cash flow was managed accordingly in line with non-funded capital expenditure and strategic stock purchase requirements. The Company’s external borrowing facilities are principally provided by invoice factoring. Available financing facilities are regularly reviewed to ensure they will not be exceeded by forecast gross debt levels.
The Directors continue to be mindful of these risks and uncertainties but remains confident that the overall business strategy will continue to provide a solid platform for the future.
Market conditions - the economy continued to be impacted heavily by inflationary pressures, impacting directly on consumer discretionary income, hitting the foodservice sector and its supply chain.
Liquidity risk – the Company’s policy on liquidity risk is to ensure that sufficient cash is available to fund ongoing operations. Cash flow was managed accordingly in line with non-funded capital expenditure and strategic stock purchase requirements. The Company’s external borrowing facilities are principally provided by invoice factoring. Available financing facilities are regularly reviewed to ensure they will not be exceeded by forecast gross debt levels.
The Directors continue to be mindful of these risks and uncertainties but remains confident that the overall business strategy will continue to provide a solid platform for the future.
The main key performance indicators remain profitability and cash flow.
PBT moved back into profit vs the prior year loss, whilst cash flow was managed accordingly in line with non-funded capex and strategic stock purchase requirements.
PBT moved back into profit vs the prior year loss, whilst cash flow was managed accordingly in line with non-funded capex and strategic stock purchase requirements.
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UNDERWOOD MEAT COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
Despite having a solid start to the year, the unannounced/unexpected attack on Iran by the USA and subsequent closing of the Strait of Hormuz saw up to a 55% peak increase on Brent crude oil. This impact has not only been felt directly due to the costs of fuel and packaging increases, but also indirectly due to the further drain on consumer discretionary spending and a slowing down of dining out.
The Company finds itself in a much stronger position to be able to weather these storms, while a global solution is sought.
The Company finds itself in a much stronger position to be able to weather these storms, while a global solution is sought.
The Directors consider the views and needs of the Company’s stakeholders in all long-term decision making as well as the consequences of these decisions across the entire company.
∙The likely consequences of any decision in the long term
The Directors of the group operate a fluid, fast acting business model where scenarios are mapped out and decision made quickly. This ensures that long term growth and security is maintained, such as the fast turnaround on capex investment and achievement of respective payback periods.
The Directors of the group operate a fluid, fast acting business model where scenarios are mapped out and decision made quickly. This ensures that long term growth and security is maintained, such as the fast turnaround on capex investment and achievement of respective payback periods.
∙The interests of employees
The Company values its employees as its best asset and encourage employee participation wherever possible. We have a track record of promoting from within and actively offer training opportunities in specialist areas as well as apprenticeship development.
The Company values its employees as its best asset and encourage employee participation wherever possible. We have a track record of promoting from within and actively offer training opportunities in specialist areas as well as apprenticeship development.
∙The need to foster the Company’s business relationships with suppliers, customers and others.
The Company engages with all external stakeholders through supply chain audits and ensuring both Underwood Meat and its partners adhere to CSR policies. This helps to strengthen long term business relationships in addition to enhancing the long-term decision-making process.
The Company engages with all external stakeholders through supply chain audits and ensuring both Underwood Meat and its partners adhere to CSR policies. This helps to strengthen long term business relationships in addition to enhancing the long-term decision-making process.
∙The impact of the Company’s operations on the community and the environment
The Company tries where possible to employ from the local community. To minimise its environment impact, the Company has introduced a number of initiatives to encourage the reduction of waste and recycle where possible.
The Company tries where possible to employ from the local community. To minimise its environment impact, the Company has introduced a number of initiatives to encourage the reduction of waste and recycle where possible.
∙The desirability of the Company maintaining a reputation for high standards of business conduct.
The Company strives to maintain its reputation for high standards by adhering to its Conflicts of Interest policy and actively promoting anonymous whistleblowing via a dedicated line and feedback boxes. This ensures conduct, governance, integrity and ethics are maintained throughout.
The Company strives to maintain its reputation for high standards by adhering to its Conflicts of Interest policy and actively promoting anonymous whistleblowing via a dedicated line and feedback boxes. This ensures conduct, governance, integrity and ethics are maintained throughout.
∙The need to act fairly as between members of the Group
As a privately owned group, the primary shareholder ensures all decisions are agreed accordingly at board level with the group Managing Director and Finance Director to ensure fair balance, integrity and a strong level of corporate governance.
As a privately owned group, the primary shareholder ensures all decisions are agreed accordingly at board level with the group Managing Director and Finance Director to ensure fair balance, integrity and a strong level of corporate governance.
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UNDERWOOD MEAT COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
This report was approved by the board on 30 July 2026 and signed on its behalf.
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UNDERWOOD MEAT COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors present their report and the financial statements of Underwood Meat Company Limited ('the Company') for the year ended 31 October 2025.
The loss for the year, after taxation, amounted to £131,669 (2024 - profit £301,666).
Dividends of £821,195 (2024 - £632,875) were paid in the year.
The directors who served during the year were:
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
The Company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the Company's performance.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the Company's performance.
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UNDERWOOD MEAT COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors are responsible for preparing the Strategic Report, the Directors' Report and the 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 Company's financial statements 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;
∙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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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UNDERWOOD MEAT COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
This Streamlined Energy Carbon Report ("SECR") relates to the activities of the company for the year ended 31
October 2025.
October 2025.
Quantification and reporting methodology
The Company has followed the 2019 HM Government Environmental Reporting Guidelines. The Company has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting Intensity measurement.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the
recommended ratio for the sector.
Measures taken to improve energy efficiency
The Company continues to look into energy efficiency where there is a direct contribution to bottom line profitability. A move towards solar panelling across 3 sites is due to start during Spring 2026 which sees both a significant saving on cost and CO2 emissions.
The Company has followed the 2019 HM Government Environmental Reporting Guidelines. The Company has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting Intensity measurement.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the
recommended ratio for the sector.
Measures taken to improve energy efficiency
The Company continues to look into energy efficiency where there is a direct contribution to bottom line profitability. A move towards solar panelling across 3 sites is due to start during Spring 2026 which sees both a significant saving on cost and CO2 emissions.
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UNDERWOOD MEAT COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
The Company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's
strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of engagement with employees, suppliers and customers.
strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of engagement with employees, suppliers and customers.
The auditor, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 30 July 2026 and signed on its behalf.
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UNDERWOOD MEAT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNDERWOOD MEAT COMPANY LIMITED
We have audited the financial statements of Underwood Meat Company Limited (the 'Company') for the year ended 31 October 2025, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the 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 were not appointed as auditor of the Company until after 31 October 2025 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 October 2025, which are included in the balance sheet at £3,794,796, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
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 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 qualified opinion.
Key audit matters
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.
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 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 qualified opinion.
Key audit matters
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.
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.
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UNDERWOOD MEAT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNDERWOOD MEAT COMPANY LIMITED (CONTINUED)
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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £3,794,796 held at 31 October 2025. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 have been prepared in accordance with applicable legal requirements.
Except for the matter described in the basis for qualified opinion section of our report, 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.
for the purpose of our audit; and
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UNDERWOOD MEAT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNDERWOOD MEAT COMPANY 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 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows:
∙the engagement team collectively had the appropriate competence, capabilities and skills to identify or
recognise non-compliance with applicable laws and regulations;
recognise non-compliance with applicable laws and regulations;
∙through discussions with the directors and other management and from our commercial knowledge and
experience of the sector, we identified the laws and regulations applicable to the Company; and
experience of the sector, we identified the laws and regulations applicable to the Company; and
∙focusing on the specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the Company, we assessed the extent of compliance with those
laws and regulations identified above through making enquiries of management and inspecting relevant
correspondence.
financial statements or the operations of the Company, we assessed the extent of compliance with those
laws and regulations identified above through making enquiries of management and inspecting relevant
correspondence.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:
obtaining an understanding of how fraud might occur, by:
∙making enquiries of management and directors as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.
regulations.
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UNDERWOOD MEAT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNDERWOOD MEAT COMPANY LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements (continued)
To address the risk of fraud through management bias and override of controls, we:
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙considered journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates were
indicative of potential bias; and
indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims;
∙considered relationship with HMRC; and
∙review of legal and professional fees and incident log for evidence of litigation.
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 Auditor's 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
Chartered Accountants
Statutory Auditors
2 Ashgate Road
Chesterfield
Derbyshire
S40 4AA
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UNDERWOOD MEAT COMPANY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2025
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UNDERWOOD MEAT COMPANY LIMITED
REGISTERED NUMBER: 02716900
BALANCE SHEET
AS AT 31 OCTOBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 July 2026 .
The notes on pages 16 to 32 form part of these financial statements.
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UNDERWOOD MEAT COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2025
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UNDERWOOD MEAT COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
Underwood Meat Company Limited is a private company limited by shares incorporated in England and
Wales. The company registration number is 02716900. The registered office is Unit 15 Ashley Business Court, Rawmarsh Road, Rotherham, S60 1RU.
Wales. The company registration number is 02716900. The registered office is Unit 15 Ashley Business Court, Rawmarsh Road, Rotherham, S60 1RU.
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 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 management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Underwood Meat (Topco) Limited as at 31 October 2025 and these financial statements may be obtained from Companies House.
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The Group breached banking covenants in relation to two term loans held by the parent company during the year ended 31 October 2025. The covenant tests relate to term loans held by the parent company, but compliance with those covenants is dependent on the trading results of the company.
The directors have discussed these matters with the group’s lender. A waiver has been obtained in respect of the covenant breach for the year ending 31 October 2025. At the date of approval of these financial statements, no waiver is expected to be required for 31 October 2026.
The directors have prepared forecasts for a period of at least twelve months from the date of approval of these financial statements, taking account of current trading performance, new pricing agreements with key customers, discussions with the lender, and working capital requirements. Based on these forecasts, the directors therefore consider it appropriate to prepare the financial statements on a going concern basis.
The directors have discussed these matters with the group’s lender. A waiver has been obtained in respect of the covenant breach for the year ending 31 October 2025. At the date of approval of these financial statements, no waiver is expected to be required for 31 October 2026.
The directors have prepared forecasts for a period of at least twelve months from the date of approval of these financial statements, taking account of current trading performance, new pricing agreements with key customers, discussions with the lender, and working capital requirements. Based on these forecasts, the directors therefore consider it appropriate to prepare the financial statements on a going concern basis.
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 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.
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on
amounts recognised in the financial statements.
Depreciation, useful lives and residual values of property, plant and equipment
The company estimates the useful lives and residual values of property, plant and equipment in order to calculate depreciation charges. Changes in these estimates could result in changes being required to annual depreciation charges in the statement of comprehensive income and the carrying values of property, plant and equipment.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provision
Stocks are stated at the lower of cost and net realisable value. The directors will assess the requirement for any provision for obsolete stock, stock utilisation patterns, regular inspection and counting of physical items.
Recoverability of trade debtors
Bad debt provisions are stated based upon known situations, such as persistent late payments, credit reference agency monitoring and regular credit control reviews.
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
Analysis of turnover by country of destination:
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
11.Taxation (continued)
There were no factors that may affect future tax charges.
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
Subsidiaries
Details of the company's subsidiaries at 31 October 2025 are as follows:
Details of the company's subsidiaries at 31 October 2025 are as follows:
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
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Page 30
UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The pension costs charge in respect of this scheme represents contributions payable by the Company to the funds and amounted to £215,854 (2024: £218,734).
Accrued pension contributions at the year end in respect of defined contribution schemes amounted to £39,839 (2024:£17,170).
The pension costs charge in respect of this scheme represents contributions payable by the Company to the funds and amounted to £215,854 (2024: £218,734).
Accrued pension contributions at the year end in respect of defined contribution schemes amounted to £39,839 (2024:£17,170).
27.Other financial commitments
A limited guarantee of £1,330,000 has been given in favour of Underwood Meat (Topco) Limited and its subsidiaries to the company's bankers. At 31 October 2025 the total group borrowings amounted to £1,106,942 (2024: £1,189,977).
During the year £658,872 (2024: £707,923) was advanced to T Bennett (director), interest on the transactions is charged at 2.25% totalling £10,945 (2024: 12,086). As at 31 October 2025 £55,414 (2024: £516,181) was payable by the director to the Company.
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UNDERWOOD MEAT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
The parent company is Underwood Meat Company (Holdings) Limited. The ultimate parent company is Underwood Meat (Topco) Limited, a company registered in England and Wales.
The group headed by Underwood Meat (Topco) Limited is the smallest and largest group in which the results of the company are consolidated. The consolidated financial statements are available from its registered office, 15 Ashley Business Court, Rawmarsh Rd, Rotherham, S60 1RU.
The group headed by Underwood Meat (Topco) Limited is the smallest and largest group in which the results of the company are consolidated. The consolidated financial statements are available from its registered office, 15 Ashley Business Court, Rawmarsh Rd, Rotherham, S60 1RU.
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