Registration number:
for the
Period from 29 March 2025 to 27 March 2026
H. Smith Food Group plc
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
H. Smith Food Group plc
Company Information
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Directors |
C J Smith D K Howe D L Fallis S D Smith D G Smith A D Smith |
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Company secretary |
S M Gatter |
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Registered office |
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Auditors |
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H. Smith Food Group plc
Strategic Report for the Period from 29 March 2025 to 27 March 2026
The directors present their strategic report for the period of 52 weeks from 29 March 2025 to 27 March 2026.
Principal activity
The principal activity of the company is wholesaler of meat and meat products.
Fair review of the business
The directors are pleased with the financial performance of the business during the year and the financial position at the year-end. The company achieved record turnover of £110.1m and delivered further growth in profitability, with profit before tax increasing to £6.2m. Net assets increased to £11.7m, further strengthening the company's financial position and continuing the positive growth achieved in recent years. The directors remain confident that the company is well positioned for the future and will continue to meet all of its financial obligations as they fall due
Key performance indicators
The company's key financial and other performance indicators were as follows:
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Unit |
2026 |
2025 |
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Turnover |
£'000 |
110,105 |
103,002 |
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Gross profit |
£'000 |
12,430 |
11,380 |
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Gross margin |
% |
11.3 |
11.0 |
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Net profit |
£'000 |
4,626 |
3,993 |
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Dividends |
£'000 |
3,138 |
2,836 |
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Net assets |
£'000 |
11,733 |
10,245 |
Principal risks and uncertainties
The company's operations expose it to a variety of financial risks that include the effects of changes in foreign currency exchange rates, credit risks, liquidity risk and interest rate risk.
The company has in place a risk management programme that seeks to limit the adverse effect on the financial performance of the company by monitoring levels of debt finance and the related finance costs. The company does not use derivative financial instruments to manage interest rate costs, and as such no hedge accounting is applied.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The company's finance department implements the policies set by the board of directors. The department have guidelines, agreed by the directors, to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.
Foreign currency risk
The company's principal foreign currency exposures arise from trade with overseas companies. Foreign currency risk arises from transactions when goods are bought and sold in currency other than Sterling. There is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The company actively hedges against adverse currency fluctuations with the purchase of forward contracts. The company also maintains Euro and Dollar bank accounts for ease of trade.
Credit risk
Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
Cash flow risk
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate loans or changes in exchange rates. The directors monitor cash flows to ensure the company is able to meet its operational requirements.
H. Smith Food Group plc
Strategic Report for the Period from 29 March 2025 to 27 March 2026
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company has interest bearing liabilities secured on fixed and floating rates. There is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The company has close dialogue with its lenders and closely monitors the interest rate charge to minimise exposure to this risk.
Future developments
The board of directors believe that the external factors impacting the UK food industry will continue to present challenges in 2026/2027. The board are ready to react to any changes in trading conditions in order to mitigate new risks and take advantage of opportunities that may arise.
Going concern
The Directors have concluded that the company is in a position where it has sufficient resources available to it to enable the business to continue in operational existence for at least 12 months and as such have continued to adopt the going concern basis in preparing the financial statements.
The directors have considered the potential impact of geopolitical developments, international trade conditions, and global supply chain risks on the company's operations. The company sources a proportion of its products from overseas suppliers across a number of geographical regions and continues to monitor factors such as political instability, shipping disruption, changes to import regulations and fluctuations in international markets.
To mitigate these risks, the company maintains long-standing relationships with a diversified supplier base and regularly reviews supply chain resilience to ensure continuity of supply. During the year, the company experienced no significant disruption that materially affected its ability to meet customer demand.
Approved by the
Director
H. Smith Food Group plc
Directors' Report for the Period from 29 March 2025 to 27 March 2026
The directors present their report and the financial statements for the period from 29 March 2025 to 27 March 2026.
Directors of the company
The directors who held office during the period were as follows:
S172 Statement
The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Company has considered the long-term strategy of the business within the Strategic Report and consider that this strategy will continue to deliver long term success to the business and its stakeholders.
The Company is committed to maintaining an excellent reputation and strives to achieve high standards. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.
The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers.
In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the Company.
Streamlined Energy and Carbon Reporting
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2026 |
2025 |
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Total emissions (kgCO2e) |
573,730 |
552,930 |
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Productivity (tonne of product) |
25,055 |
25,712 |
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Emissions intensity |
22.9 |
21.5 |
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Natural gas (tCO2e) |
13.86 |
16.32 |
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Company-owned trucks (tCO2e) |
412.02 |
403.47 |
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Company-owned diesel cars (tCO2e) |
5.57 |
6.72 |
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Scope 1 Total (tCO2e) |
431.45 |
426.51 |
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Grid electricity (tCO2e) |
135.48 |
119.25 |
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Scope 2 Total (tCO2e) |
135.48 |
119.25 |
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Business travel in employee owned vehicles (tCO2e) |
6.8 |
7.17 |
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Scope 3 Total (tCO2e) |
6.8 |
7.17 |
H. Smith Food Group plc
Directors' Report for the Period from 29 March 2025 to 27 March 2026
As can be seen from the above figures, overall greenhouse gas emissions compared with the previous year have increased by 4%. The Group measures intensity using weight of product sales (in tonnes) as a measure of productivity, to allow the Group to measure their performance in reducing greenhouse gas emissions relative to their performance as a business. Carbon intensity increased 6% to 22.9 compared to the previous year.
The report data has been collated internally and CO2e have been calculated using average prices per kwh of energy and price per litre of fuel taken from supplier invoices. CO2e has been calculated using the UK Government GHG Conversion Factors for Company Reporting.
The Company takes very seriously the effect of carbon emissions on the planet and our carbon footprint. We have endeavoured in the past, and will continue in the future, to reduce our emissions wherever possible. For example, using roof space for the installation of solar panels allowing us to generate renewable electricity, and replacing old vehicles with electric and hybrid vehicles.
Dividends
Dividends of £3,138,300 (2025: £2,835,900) were paid during the year.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
H. Smith Food Group plc
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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). 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 period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
H. Smith Food Group plc
Independent Auditor's Report to the Members of H. Smith Food Group plc
Opinion
We have audited the financial statements of H. Smith Food Group plc (the 'company') for the period from 29 March 2025 to 27 March 2026, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 27 March 2026 and of its profit for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
H. Smith Food Group plc
Independent Auditor's Report to the Members of H. Smith Food Group plc
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 where the Companies Act 2006 requires us to report to you if, in our opinion:
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• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors' remuneration specified by law are not made; or |
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we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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.
Extent to which the audit was 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 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, including the UK Companies Act and tax legislation and, those that 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.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
H. Smith Food Group plc
Independent Auditor's Report to the Members of H. Smith Food Group plc
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, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated 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:
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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; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
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enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this 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
Staverton Court
Staverton
GL51 0UX
H. Smith Food Group plc
Profit and Loss Account for the Period from 29 March 2025 to 27 March 2026
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Note |
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
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Turnover |
|
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|
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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 receivable and similar income |
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Interest payable and similar charges |
( |
( |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial period |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the period other than the results above.
H. Smith Food Group plc
(Registration number: 02461736)
Balance Sheet as at 27 March 2026
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Note |
27 March 2026 |
28 March 2025 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
|||
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Called up share capital |
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Share premium reserve |
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Capital redemption reserve |
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Retained earnings |
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Total equity |
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Approved and authorised by the
............................................
Director
H. Smith Food Group plc
Statement of Changes in Equity for the Period from 29 March 2025 to 27 March 2026
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Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
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|
At 30 March 2024 |
|
|
|
|
|
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Profit for the period |
- |
- |
- |
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Dividends |
- |
- |
- |
( |
( |
|
New share capital subscribed |
|
|
- |
- |
|
|
At 28 March 2025 |
99,000 |
667,140 |
30,000 |
9,448,829 |
10,244,969 |
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Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
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At 29 March 2025 |
|
|
|
|
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Profit for the period |
- |
- |
- |
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Dividends |
- |
- |
- |
( |
( |
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At 27 March 2026 |
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H. Smith Food Group plc
Statement of Cash Flows for the Period from 29 March 2025 to 27 March 2026
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Note |
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
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Cash flows from operating activities |
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Profit for the period |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Finance income |
( |
( |
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Finance costs |
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Income tax expense |
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||
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Working capital adjustments |
|||
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(Increase)/decrease in stocks |
( |
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Increase in trade debtors |
( |
( |
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Increase/(decrease) in trade creditors |
|
( |
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Cash generated from operations |
|
|
|
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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|
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Cash flows from investing activities |
|||
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Interest received |
|
|
|
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Acquisitions of tangible assets |
( |
( |
|
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
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Proceeds from issue of ordinary shares, net of issue costs |
- |
|
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Repayment of bank borrowing |
- |
( |
|
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Proceeds from other borrowing draw downs |
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|
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Payments to invoice discounting |
( |
|
|
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Dividends paid |
( |
( |
|
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Increase in directors' loan account |
828,917 |
527,120 |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
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Cash and cash equivalents at 29 March |
|
( |
|
|
Cash and cash equivalents at 27 March |
1,544 |
2,072 |
|
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
General information |
The company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
In assessing whether the going concern basis is appropriate, the directors take into account all available information about the future, which is at least, but not limited to, 12 months from the date of signing these financial statements.
As at the date of approval of these financial statements, the directors believe that the business will continue to operate successfully for the foreseeable future and be able to meet its liabilities as and when they fall due. The directors consider that there are no material uncertainties about the company's ability to continue as a going concern and so the financial statements have been prepared on the going concern basis.
Group accounts
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertakings comprise a large-sized group. Although the Companies Act 2006 requires large-sized groups to prepare group accounts, the company has not prepared them on the basis that the results and net assets of the subsidiary undertakings are not material to the group.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on going bases. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
2 |
Accounting policies (continued) |
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue on receipt of goods by the customer. For overseas customers, revenue is recognised upon delivery in accordance with the agreed international shipping terms.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold land and buildings |
2 - 15% straight line |
|
Plant and Machinery |
4 - 15% reducing balance |
|
Fixtures and fittings |
4 - 33% straight line |
|
Motor Vehicles |
15 - 25% reducing balance |
Investments
Investments are stated at historical cost less provision for any diminution in value.
Dividends on securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
2 |
Accounting policies (continued) |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stock
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Cost includes all direct costs.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
2 |
Accounting policies (continued) |
Pensions
The company operates a defined contribution pension scheme for all employees. The assets of the scheme are held separately from those of the group. The annual contributions payable are charged to the profit and loss account.
Financial Instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Financial assets:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
Turnover |
The analysis of the company's Turnover for the period from continuing operations is as follows:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Sale of goods |
|
|
The analysis of the company's Turnover for the period by market is as follows:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the period is as follows:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Miscellaneous other operating income |
|
|
Other income includes fees received for administrative and handling services provided to a third party.
|
Operating profit |
Arrived at after charging:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Operating lease expense - plant and machinery |
|
|
|
Depreciation expense |
|
|
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Directors |
|
|
|
Administration and support |
|
|
|
Distribution |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
1,536,507 |
1,571,415 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
Auditors' remuneration |
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other non-audit services |
- |
|
|
|
|
|
Interest payable and similar expenses |
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Interest on bank borrowings |
|
|
|
Finance charges |
|
|
|
Interest on other loans |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
( |
|
1,607,128 |
1,409,514 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
- |
(541) |
|
Total deferred taxation |
( |
( |
|
Tax expense in the income statement |
|
|
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
10 |
Taxation (continued) |
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2025 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
29 March 2025 to 27 March 2026 |
30 March 2024 to 28 March 2025 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
- |
( |
|
Decrease in UK and foreign current tax from adjustments for prior periods |
( |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Total tax charge |
|
|
Deferred tax assets and liabilities
|
2026 |
Liability |
|
Difference between accumulated depreciation and capital allowances |
|
|
2025 |
Liability |
|
Difference between accumulated depreciation and capital allowances |
|
|
Tangible assets |
|
Freehold land and buildings |
Plant and machinery |
Fixtures and fittings |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 29 March 2025 |
|
|
|
|
|
|
Additions |
- |
- |
|
- |
|
|
At 27 March 2026 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 29 March 2025 |
|
|
|
|
|
|
Charge for the period |
|
|
|
|
|
|
At 27 March 2026 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 27 March 2026 |
|
|
|
|
|
|
At 28 March 2025 |
|
|
|
|
|
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
Investments held as fixed assets |
|
27 March 2026 |
28 March 2025 |
|
|
Shares in group undertakings |
|
|
|
Unlisted investments |
|
|
|
|
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
|
2026 |
2025 |
|||
|
Subsidiary undertakings |
||||
|
|
England and Wales |
Ordinary |
|
|
|
The above subsidiary company was dormant throughout the period.
|
||||
|
|
England and Wales |
Ordinary |
|
|
The principal activity of H. Smith (Smithfield) Limited is wholesaler of meat and meat products.
|
Stocks |
|
27 March 2025 |
28 March 2025 |
|
|
Goods for resale |
9,099,034 |
8,553,252 |
|
Debtors |
|
27 March |
28 March |
|
|
Trade debtors |
|
|
|
Payments on account |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
|
|
Trade debtors, as detailed above, are subject to invoice discounting arrangements at the year end.
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
Creditors |
|
Note |
27 March |
28 March |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts owed to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accrued expenses |
|
|
|
|
Corporation tax liability |
962,774 |
770,791 |
|
|
|
|
|
Loans and borrowings |
Current loans and borrowings
|
Note |
27 March |
28 March |
|
|
Bank borrowings |
|
|
|
|
Invoice financing creditor |
|
|
|
|
Directors' current accounts |
|
|
|
|
|
|
||
The total bank loan of £1,464,652 (2025 - £976,651) is a trade finance loan which is equivalent to $1,953,681 (2025 - $1,258,805), which bears interest at 2.25% above the base rate and is secured by a debenture and a first legal charge over property of the company.
The invoice financing creditor is secured by a mortgage debenture charge over all of the assets of the company.
|
Share capital |
Allotted, called up and fully paid shares
|
27 March 2026 |
28 March 2025 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
99,000 |
|
99,000 |
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
Reserves |
Reserves of the group and company represent the following:
Share capital
This represents the nominal value of the issued equity share capital.
Share premium
This represents premium value of the issued equity share capital.
Capital redemption reserve
This is a non-distributable reserve which represents the amount of the company's issued share capital is diminished accordingly by the nominal value as a result of share repurchased.
Profit and loss account
Cumulative profit and loss net of distributions to the owners.
|
Pension and other schemes |
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £6,024 (2025 - £1,006) were payable to the scheme at the end of the period and are included in creditors.
|
Obligations under operating leases |
The total of future minimum lease payments is as follows:
|
27 March |
28 March |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Analysis of changes in net debt |
|
At 29 March 2025 |
Financing cash flows |
At 27 March 2026 |
|
|
Cash and cash equivalents |
|||
|
Cash |
2,072 |
(528) |
1,544 |
|
Borrowings |
|||
|
Short term borrowings |
(11,485,481) |
1,512,936 |
(9,972,545) |
|
( |
|
( |
|
|
|
|||
H. Smith Food Group plc
Notes to the Financial Statements for the Period from 29 March 2025 to 27 March 2026
|
Related party transactions |
During the period the company made the following related party transactions:
H. Smith (Smithfield) Limited
(A company which H. Smith Food Group plc has an interest in the share capital)
The company made sales of £18,907 (2025 - £21,760) and purchases of £nil (2025 - £44,208). At the balance sheet date the amount due from H. Smith (Smithfield) Limited was £nil (2025 - £nil).
Included in loans and borrowings are amounts due to the company directors. The year end positions are shown below:
|
Balance |
Balance |
|||
|
2026 |
2025 |
|||
|
£ |
£ |
|||
|
Directors' current accounts |
4,351,701 |
3,378,982 |
||
These loans are repayable on demand with interest being charged at 5.5% per annum (2025: 5.5%) and amounting to £143,802 (2025 - £108,647).
|
Parent and ultimate parent undertaking |
The ultimate controlling party is