Jacksons Dairies Limited 31/03/2025 iXBRL

Company registration number: 04182340

Jacksons Dairies Limited

Financial statements

31 March 2025

Jacksons Dairies Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

Jacksons Dairies Limited

Directors and other information


	Directors	Mr Wayne Hughes
		Mrs Ann Robinson
		Mrs Janet Hughes


	Company number	04182340


	Registered office	Torkington Hall Dairy
		Norbury Hollow Road
		Hazel Grove
		Stockport
		SK7 6NE


	Business address	Torkington Hall Dairy
		Norbury Hollow Road
		Hazel Grove
		Stockport
		SK7 6NE


	Auditor	G A Harris & Co Limited
		Brulimar House
		Jubilee Road
		Middleton
		Manchester
		M24 2LX




	Bankers	Natwest Bank
		180 London Road
		Hazel Grove
		Cheshire
		SK7 4DH

Jacksons Dairies Limited

Strategic report

Year ended 31 March 2025

Fair review of the business & key indicators

Jacksons Dairies Limited operates two principal divisions. The first is its wholesale distribution business, supplying dairy products to retailers, bakeries and other trade customers. The second is its direct-to-consumer doorstep delivery operation.

During the year, the company continued to promote its doorstep business through its mobile app and broadened its product range to support future growth.

Turnover decreased from £14.8 million to £14.2 million. The company incurred a pre tax loss of £726,000 during the year to 31st March 2025. This was partly attributable to bad debts of £272,152, before debt insurance proceeds of £112,500, as detailed in notes 5 and 6.

Profitability was also adversely affected by a reduction in the gross profit margin of approximately 3.5%, principally due to fluctuations in the price of milk during the year.

Following the year end, the directors implemented significant management changes in response to the company's recent trading performance. Ann Robinson retired as Finance Director in October 2025 and Scott Hughes was appointed as a director in December 2025. The new management team has been introduced to bring fresh ideas, improve efficiency and return the business to sustainable profitability.

Principal risks and uncertainties

The principal risks facing the company include fluctuations in milk prices, competitive pressures within the dairy distribution market, customer credit risk and increases in operating costs. The directors continue to monitor these risks and respond appropriately to changing market conditions.

Development and performance

The company will emphasise its commitment to quality assurance standards set by its regulators and quality control in all areas. Regular external audits will ensure all accreditations are in place.

Outlook

Post year end, management has undertaken a review of the company's operations with a view to reducing unnecessary labour and vehicle costs.

The company has also moved away from certain high-volume, low-margin business in favour of lower-volume, higher-margin product lines.

In addition, the company continues to explore further market opportunities and has acquired smaller profitable businesses to diversify its operations and strengthen long-term profitability.

Since the year end, market milk prices have remained at comparatively low levels, which is expected to have a positive impact on the company's gross profit margin. Together with new business secured since the year end and the operational improvements being implemented, the directors believe these developments provide improved opportunities for the company to return to profitability.

Going concern

The directors remain fully committed to the long-term success of the company and continue to support its cash flow and ongoing investment requirements.

Having considered the trading outlook, the operational improvements implemented since the year end and the continued financial support available to the business, the directors consider it appropriate to prepare the financial statements on the going concern basis.

This report was approved by the board of directors on 6 August 2026 and signed on behalf of the board by:

Mr Wayne Hughes

Director

Jacksons Dairies Limited

Directors report

Year ended 31 March 2025

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

Directors

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

Mr Wayne Hughes

Mrs Ann Robinson

Mrs Janet Hughes

Dividends

The directors do not recommend the payment of a dividend.

Future developments

Following the year end, the directors have continued to implement measures to improve the company's financial performance. The company has made strategic acquisitions and investments and has diversified its product range towards lower-volume, higher-margin business in order to improve profitability. The lower market price of raw milk since the year end is expected to assist in improving gross profit margins. Following a period of uncertainty, the directors have reduced overhead costs, improved operational efficiencies and secured additional business, which they believe will support a return to profitability.

Financial instruments

Principal risks & uncertainties - see notes in strategic report.

Events after the end of the reporting period

Particulars of events after the reporting period are detailed in the notes to the financial statements.

Disclosure of information in the strategic report.

Details of the company's trading performance for the year ended 31st March 2025, together with its future developments and risk exposure are included in the Strategic Report.

Directors responsibilities statement

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

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

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

- select suitable accounting policies and then apply them consistently;

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

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

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

Auditor

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

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

A resolution to reappoint G A Harris & Co Limited as auditor will be proposed at the forthcoming Annual General Meeting.

This report was approved by the board of directors on 06 August 2026 and signed on behalf of the board by:

Mr Wayne Hughes

Director

Jacksons Dairies Limited

Independent auditor's report to the members of

Jacksons Dairies Limited

Year ended 31 March 2025

Opinion

We have audited the financial statements of Jacksons Dairies Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, statement of financial position, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to the going concern note, Note 24 in the financial statements and the accounting policy re going concern, which indicate that the company has incurred losses and, as at the balance sheet date, certain events and conditions exist which indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

As explained in the accounting policies and note 24, the directors have prepared the financial statements on the going concern basis as they consider this to be appropriate, having regard to the forecasts, financing arrangements and other matters described in that note.

Our opinion is not modified in respect of this matter.

Other Information

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations relate to the Companies Act 2006, UK taxation legislation, employment legislation and health and safety legislation, together with compliance with the company's financing arrangements. - obtaining an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates; - making enquiries of management and those charged with governance regarding known or suspected instances of fraud, non-compliance with laws and regulations and litigation or claims; - reviewing minutes of meetings of directors and correspondence with regulators where appropriate; - reviewing legal and professional expenses to identify indications of litigation or non-compliance; - testing journal entries and other adjustments, particularly those processed at or near the year end; - assessing the business rationale for significant or unusual transactions; - evaluating accounting estimates and judgements for evidence of management bias; - reviewing related party relationships and transactions; and - performing substantive audit procedures designed to address the assessed risks of material misstatement arising from fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK). The potential effects of inherent limitations are particularly significant in the case of fraud because fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. Consequently, 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. In planning and performing our audit we also considered the risks associated with revenue recognition, management override of controls, the valuation of inventory, the recoverability of trade receivables and the assumptions underpinning the directors' going concern assessment, including compliance with banking and other financing arrangements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Gary Harris (Senior Statutory Auditor)

For and on behalf of

G A Harris & Co Limited

Chartered Accountants & Statutory Auditor

Brulimar House

Jubilee Road

Middleton

Manchester

M24 2LX

06 August 2026

Jacksons Dairies Limited

Statement of comprehensive income

Year ended 31 March 2025

		2025	2024
	Note	£	£


Turnover	4	14,199,481	14,780,648
Cost of sales		( 11,920,349)	( 11,885,597)
		_______	_______
Gross profit		2,279,132	2,895,051

Administrative expenses		( 2,978,184)	( 2,987,578)
Other operating income	5	112,500	-
		_______	_______
Operating loss	6	( 586,552)	( 92,527)

Interest payable and similar expenses	9	( 139,342)	( 125,444)
Loss before taxation		( 725,894)	( 217,971)

Tax on loss	10	180,668	228,397
		_______	_______
(Loss)/profit for the financial year and total comprehensive income		( 545,226)	10,426
		_______	_______

All the activities of the company are from continuing operations.

Jacksons Dairies Limited

Statement of financial position

31 March 2025

		2025		2024
	Note	£	£	£	£

Fixed assets
Intangible assets	11	20,603		20,937
Tangible assets		1,348,043		1,467,067
		_______		_______
			1,368,646		1,488,004

Current assets
Stocks	13	76,636		142,770
Debtors	14	1,613,512		2,218,233
Cash at bank and in hand		9,976		27,849
		_______		_______
		1,700,124		2,388,852
Creditors: amounts falling due
within one year	15	( 2,724,198)		( 2,779,022)
		_______		_______
Net current liabilities			( 1,024,074)		( 390,170)
			_______		_______
Total assets less current liabilities			344,572		1,097,834

Creditors: amounts falling due
after more than one year	16		( 502,580)		( 529,948)

Provisions for liabilities	18		154,503		( 26,165)

			_______		_______
Net (liabilities)/assets			( 3,505)		541,721
			_______		_______

Capital and reserves
Called up share capital	21		400		400
Revaluation reserve	22		350,000		350,000
Profit and loss account	22		( 353,905)		191,321
			_______		_______
Shareholders (deficit)/funds			( 3,505)		541,721
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 06 August 2026 , and are signed on behalf of the board by:

Mr Wayne Hughes

Director

Company registration number: 04182340

Jacksons Dairies Limited

Statement of changes in equity

Year ended 31 March 2025

	Called up share capital	Revaluation reserve	Profit and loss account	Total
	£	£	£	£


At 1 April 2023	400	350,000	180,895	531,295

(Loss)/profit for the year			10,426	10,426
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	10,426	10,426

	_______	_______	_______	_______
At 31 March 2024 and 1 April 2024	400	350,000	191,321	541,721

(Loss)/profit for the year			( 545,226)	( 545,226)
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	( 545,226)	( 545,226)

	_______	_______	_______	_______
At 31 March 2025	400	350,000	( 353,905)	( 3,505)
	_______	_______	_______	_______

Jacksons Dairies Limited

Statement of cash flows

Year ended 31 March 2025

	2025	2024
	£	£

Cash flows from operating activities
(Loss)/profit for the financial year	( 545,226)	10,426

Adjustments for:
Depreciation of tangible assets	426,998	409,672
Amortisation of intangible assets	8,334	20,734
Interest payable and similar expenses	139,342	125,444
Gain/(loss) on disposal of tangible assets	( 9,098)	1,485
Tax on loss	( 180,668)	( 228,397)
Accrued expenses/(income)	( 124,290)	( 74,447)

Changes in:
Stocks	66,134	37,405
Trade and other debtors	717,221	( 197,656)
Trade and other creditors	( 173,340)	365,890
	_______	_______
Cash generated from operations	325,407	470,556

Interest paid	( 139,342)	( 125,444)
	_______	_______
Net cash from operating activities	186,065	345,112
	_______	_______

Cash flows from investing activities
Purchase of tangible assets	( 313,084)	( 163,682)
Proceeds from sale of tangible assets	14,208	24,959
Purchase of intangible assets	( 8,000)	-
	_______	_______
Net cash used in investing activities	( 306,876)	( 138,723)
	_______	_______

Cash flows from financing activities
Proceeds from borrowings	( 6,506)	35,157
Payment of finance lease liabilities	109,444	( 31,149)
	_______	_______
Net cash from financing activities	102,938	4,008
	_______	_______

Net increase/(decrease) in cash and cash equivalents	( 17,873)	210,397
Cash and cash equivalents at beginning of year	27,849	(182,549)
	_______	_______
Cash and cash equivalents at end of year	9,976	27,848
	_______	_______

Jacksons Dairies Limited

Notes to the financial statements

Year ended 31 March 2025

1. General information

The company is a private company limited by shares, registered in England. The address of the registered office is Torkington Hall Dairy, Norbury Hollow Road, Hazel Grove, Stockport, SK7 6NE.

2. Statement of compliance

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

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of the glass bottle line..

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

Going concern

Jacksons Dairies Limited incurred a trading loss during the year ended 31 March 2025.After the year end, the company engaged Scott Hughes as a director together with Ian Southworth as a business consultant. Together, they have implemented a programme of changes aimed at improving the long-term performance of the business. This has included the acquisition of additional businesses, with a greater emphasis on higher-margin customers and products, which has led to improvements to the overall profitability of the company. Numerous cost savings have also been achieved, in staffing and vehicle costs.The directors anticipate that these changes will result in the company returning to profit. They have prepared forecasts and business plans which demonstrate the expected improvement in trading performance and are satisfied that appropriate funding arrangements are in place to support the business.Having considered the forecasts, available funding and the strategic changes implemented within the business, the directors are confident that the company will continue to operate as a going concern and will develop into a profitable and viable business going forward. Accordingly, the financial statements have been prepared on the going concern basis.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make significant judgements, about the carrying value of assets and liabilities that re not readily apparent from other sources. The directors have revalued the glass bottling line in the previous financial year. They do not believe that further revaluation is necessary in this accounting period and have based their value on their experience and knowledge of the sector. Directors are also required to make significant estimates and underlying assumptions relating to depreciation, amortisation, prepayments, accruals and bad debt provisions which are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision effects only that period, or in the period of the revision and future periods where the revision effects both the current and future periods. The estimates and associated assumptions are based on historical experience and other factors that re considered to be relevant. Actual results may vary from these estimates.

Turnover

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

Taxation

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

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

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


Goodwill	-	20 %	straight line

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

Tangible assets

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

Depreciation

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


Leasehold Property Improvements	-	4 %	straight line
Plant and machinery	-	15 %	reducing balance
Fittings fixtures and equipment	-	15 %	reducing balance
Motor vehicles	-	3 years straight line
Computer equipment	-	25 %	reducing balance

The depreciation rate for motor vehicles has been revised from 25% reducing balance to 3 years straight line. This was necessary as the useful economic life of the vehicles, the majority of which are vans, is only expected to be 3 years. The affect of this change was agreed with the directors and agreed as applicable from 1st April 2023.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

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

Hire purchase and finance leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial instruments

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

The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors & creditors and loans from the bank. Debt instruments, (other than those wholly repayable or receivable within one year) including loans, other debtors and creditors and hire purchase agreements are initially measured at the transaction price and subsequently at amortised costs using the effective interest rate method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If such evidence is identified, a impairment loss is recognised in the statement of comprehensive income.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	14,199,481	14,780,648
	_______	_______

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

5. Other operating income

	2025	2024
	£	£
Insurance claims received	112,500	-
	_______	_______

6. Operating loss

Operating loss is stated after charging/(crediting):

	2025	2024
	£	£
Amortisation of intangible assets	8,334	20,734
Depreciation of tangible assets	426,998	409,672
(Gain)/loss on disposal of tangible assets	( 9,098)	1,485
Impairment of trade debtors	272,152	101,254
Fees payable for the audit of the financial statements	10,250	9,000
	_______	_______

7. Staff costs

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

	2025	2024
Production staff	50	49
Administrative staff	6	5
	_______	_______
	56	54
	_______	_______

The aggregate payroll costs incurred during the year were:

	2025	2024
	£	£
Wages and salaries	1,727,379	1,602,947
Social security costs	169,312	144,031
Other pension costs	42,313	40,703
	_______	_______
	1,939,004	1,787,681
	_______	_______

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	22,110	24,120
Company contributions to pension schemes in respect of qualifying services	9,660	9,759
	_______	_______
	31,770	33,879
	_______	_______

The number of directors who accrued benefits under company pension plans was as follows:

	2025	2024
	Number	Number
Defined contribution plans	2	2
	_______	_______

9. Interest payable and similar expenses

		2025	2024
		£	£
Bank loans and overdrafts		7,232	13,392
Other loans made to the company:
	Finance leases and hire purchase contracts	47,493	39,731
	Factoring loans	84,617	72,321
		_______	_______
		139,342	125,444
		_______	_______

10. Tax on loss

Major components of tax income

	2025	2024
	£	£
Deferred tax:
Origination and reversal of timing differences	( 180,668)	( 228,397)
	_______	_______
Tax on loss	( 180,668)	( 228,397)
	_______	_______

Reconciliation of tax income

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

	2025	2024
	£	£
Loss before taxation	( 725,894)	( 217,971)
	_______	_______

Loss multiplied by rate of tax	( 181,474)	( 54,493)
Effect of expenses not deductible for tax purposes	-	371
Effect of capital allowances and depreciation	( 30,562)	( 67,056)
Utilisation of tax losses	-	11,644
Unrelieved tax losses	212,036	109,534
Movement in deferred tax provision	( 180,668)	( 228,397)
	_______	_______
Tax on loss	( 180,668)	( 228,397)
	_______	_______

11. Intangible assets

	Goodwill	Total
	£	£
Cost
At 1 April 2024	957,764	957,764
Additions	8,000	8,000
	_______	_______
At 31 March 2025	965,764	965,764
	_______	_______
Amortisation
At 1 April 2024	936,827	936,827
Charge for the year	8,334	8,334
	_______	_______
At 31 March 2025	945,161	945,161
	_______	_______
Carrying amount
At 31 March 2025	20,603	20,603
	_______	_______
At 31 March 2024	20,937	20,937
	_______	_______

12. Tangible assets

	Leasehold property improvements	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Computer equipment	Total
	£	£	£	£	£	£
Cost/Revaluation
At 1 April 2024	125,260	2,817,159	8,056	594,096	103,290	3,647,861
Additions	-	15,000	-	294,773	3,311	313,084
Disposals	-	-	-	( 17,500)	-	( 17,500)
	_______	_______	_______	_______	_______	_______
At 31 March 2025	125,260	2,832,159	8,056	871,369	106,601	3,943,445
	_______	_______	_______	_______	_______	_______
Depreciation
At 1 April 2024	59,052	1,629,204	5,706	412,415	74,417	2,180,794
Charge for the year	5,010	180,443	353	232,213	8,979	426,998
Disposals	-	-	-	( 12,390)	-	( 12,390)
	_______	_______	_______	_______	_______	_______
At 31 March 2025	64,062	1,809,647	6,059	632,238	83,396	2,595,402
	_______	_______	_______	_______	_______	_______
Carrying amount
At 31 March 2025	61,198	1,022,512	1,997	239,131	23,205	1,348,043
	_______	_______	_______	_______	_______	_______
At 31 March 2024	66,208	1,187,955	2,350	181,681	28,873	1,467,067
	_______	_______	_______	_______	_______	_______

Tangible assets held at valuation

In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:


	Plant and machinery	Total
	£	£
At 31 March 2025
Aggregate cost	970,736	970,736
Aggregate depreciation	(411,743)	(411,743)
	_______	_______
Carrying amount	558,993	558,993
	_______	_______

At 31 March 2024
Aggregate cost	970,736	970,736
Aggregate depreciation	(313,097)	(313,097)
	_______	_______
Carrying amount	657,639	657,639
	_______	_______

The glass bottle production lines were revalued by the directors during the year ended 31st March 2023, year to reflect more accurately the value of the line. The total revaluation was £350,000. No revaluations have been made since.The note above shows the historical cost of the new glass bottling line and associated depreciation, prior to the revaluation of £350,000 in the year ended 31st March 2023.

Obligations under finance leases

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:


		Motor vehicles
		£
	At 31 March 2025	237,696
		_______
	At 31 March 2024	181,747
		_______

13. Stocks

	2025	2024
	£	£
Finished goods and goods for resale	76,636	142,770
	_______	_______

14. Debtors

	2025	2024
	£	£
Trade debtors	1,019,095	1,711,870
Amounts owed by related companies	352,048	403,059
Prepayments and accrued income	199,895	46,507
Other debtors	42,474	56,797
	_______	_______
	1,613,512	2,218,233
	_______	_______

The debtors above include the following amounts falling due after more than one year:

	2025	2024
	£	£
Amounts owed by related companies	-	403,059
	_______	_______

15. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	920,152	830,594
Trade creditors	1,392,001	1,546,057
Accruals and deferred income	70,334	82,124
Social security and other taxes	42,104	43,168
Obligations under finance leases	196,108	155,360
Other creditors	103,499	121,719
	_______	_______
	2,724,198	2,779,022
	_______	_______

A debenture is held by the bank over the company assets. Obligations held under finance leases and hire purchase contracts are secured on the asset concerned. Included in bank loans and overdrafts is an amount of £920,152 (2024 £830,594) due to Praetura Invoice Finance, who replaced RBS Invoice Finance Discounting. The liability owing to Praetura is secured on the book debts of the company.

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

	2025	2024
	£	£
Bank loans and overdrafts	91,168	89,819
Obligations under finance leases	381,209	312,513
Other creditors	30,203	127,616
	_______	_______
	502,580	529,948
	_______	_______

17. Obligations under finance leases

Company lessee

The total future minimum lease payments under finance lease agreements are as follows:

	2025	2024
	£	£
Not later than 1 year	196,108	155,360
Later than 1 year and not later than 5 years	381,209	312,513
	_______	_______
	577,317	467,873
	_______	_______
Present value of minimum lease payments	577,317	467,873
	_______	_______

18. Provisions

	Deferred tax (note 19)	Total
	£	£
At 1 April 2024	26,165	26,165
Charges against provisions	( 180,668)	( 180,668)
	_______	_______
At 31 March 2025	( 154,503)	( 154,503)
	_______	_______

19. Deferred tax

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

	2025	2024
	£	£
Included in provisions (note 18)	( 154,503)	26,165
	_______	_______

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

	2025	2024
	£	£
Accelerated capital allowances	262,636	293,307
Unused tax losses	( 417,139)	( 267,142)
	_______	_______
	(154,503)	26,165
	_______	_______

20. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 42,313 (2024: £ 40,703 ).

21. Called up share capital

Issued, called up and fully paid

	2025		2024
	No	£	No	£
Ordinary shares shares of £ 1.00 each	400	400	400	400
	_______	_______	_______	_______

22. Reserves

Profit and loss account:This reserve records retained earnings and accumulated losses.

23. Events after the end of the reporting period

Going concern A review of company's management accounts, post year end, showed trading losses for the early part of the financial year for the year ended 31st March 2026. The directors efforts since this period have been to review and reduce where necessary, all costs and overheads. The introduction of a new production/office manager has also led to more efficient production processes throughout the organisation. A review of the customer base has also highlighted less profitable customers (due to factors such as distance from the depot) and where necessary trading has ceased with these customers.All loan and finance agreement repayments are being met as they fall due since the year end. The company has had no any instances of being refused credit if and when required.The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. If the need to financially support the business should arise in the coming 12 months, the directors are willing to support the company. Therefore the going concern basis has been used in preparing the financial statements.Also see accounting policies, note 3 re going concern.

24. Related party transactions

During the year the company entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2025	2024	2025	2024
	£	£	£	£
MSC Holdings Limited	51,010	94,838	352,048	403,058
	_______	_______	_______	_______

Wayne & Janet Hughes, a director and shareholders of Jacksons Dairies Ltd, own 100% of the issued share capital of MSC Holdings Limited. MSC Holdings Ltd owns some of the land at Torkington Hall Dairy (the main depot). Rent charged during the year was £86,933 (2024 £94,836), which is at the current market value, per the directors. The debtor balance of £352,048 relates to a loan made to MSC Holdings Ltd from the company when the land was originally purchased. This land according to the directors has a value in excess of £1.5m The balance is included in debtors and disclosed as due greater than one year.The company also pays rent to a partnership owned by Wayne Hughes and Ann Robinson. The partnership owns the rest of land occupied at Torkington Dairy. Rent of £68,000 (2024 £102,000) was paid in the year from Jacksons, which the directors believe to be at the market rate.

25. Controlling party

The company is controlled by the directors, who between them own 100% of the issued share capital.