Company Registration Number: 00207864
30 SEPTEMBER 2025
CLASSIC FINE FOODS UK LIMITED
COMPANY INFORMATION
CLASSIC FINE FOODS UK LIMITED
CONTENTS
CLASSIC FINE FOODS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The Directors present their strategic report for the year ended 30 September 2025.
Principal activities
The Company is involved in the wholesaling and distribution of fine food products to customers in the United Kingdom.
The Company's key financial and other performance indicators during the year were as follows:
Turnover increased by 9% during the year. Turnover growth was largely supported by company's investments into fruit and vegetable as well as plant-based initiatives in the previous year. The company strategizes into becoming a basket leader rather than a brand leader previously and new investment initiatives are endeavoured every financial year. The forecast prepared for FY2025-2026 expects better turnover than FY2024-2025. The company forecast predicts revenue for FY2025-2026 to be 10% higher than FY2024-25.
Gross profit increased by 4% during the year. Better price management helped to improve margins. An effective foreign currency hedging strategy was maintained which also helped margin improvement.
The total average number of employees increased during the year to support and deliver increased demand. Due to the Company's expansion strategy in the FY 2025-2026, the average number of employees is expected to increase compared to FY2024-2025.
Turnover increased by 9% during the year. Turnover growth was largely supported by company's investments into fruit and vegetable as well as plant-based initiatives in the previous year. The company strategizes into becoming a basket leader rather than a brand leader previously and new investment initiatives are endeavoured every financial year. The forecast prepared for FY2025-2026 expects better turnover than FY2024-2025. The company forecast predicts revenue for FY2025-2026 to be 10% higher than FY2024-25.
Gross profit increased by 4% during the year. Better price management helped to improve margins. An effective foreign currency hedging strategy was maintained which also helped margin improvement.
The total average number of employees increased during the year to support and deliver increased demand. Due to the Company's expansion strategy in the FY 2025-2026, the average number of employees is expected to increase compared to FY2024-2025.
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CLASSIC FINE FOODS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The principal risks and uncertainties facing the Company are broadly grouped as competitive, financial, supply chain and inflation risks.
1.Competitive risk
The fine food market is extremely competitive with many companles of varying sizes operating in this segment of the economy. This risk is managed by employing an effective, well trained and knowledgeable sales force backed up by strong after-sales support, the procurement of the best products from around the world and securing long term relationships with key suppliers and customers.
The fine food market is extremely competitive with many companles of varying sizes operating in this segment of the economy. This risk is managed by employing an effective, well trained and knowledgeable sales force backed up by strong after-sales support, the procurement of the best products from around the world and securing long term relationships with key suppliers and customers.
2.Financial risk
The Company sources approximately 70% of its products from Eurozone suppliers. The relative value of Sterling to Euro is therefore a key risk for the Company, as any strengthening in the value of the Euro to Sterling directly affects profitability. The risk is mitigated by an effective foreign exchange purchase policy, whereby purchases for a minimum of three and a maximum of twelve months are covered by forward currency contracts in which the Company's ultimate parent is the counterparty. The Company also monitors item profitability and has an effective pricing strategy to ensure it trades profitably.
The Company sources approximately 70% of its products from Eurozone suppliers. The relative value of Sterling to Euro is therefore a key risk for the Company, as any strengthening in the value of the Euro to Sterling directly affects profitability. The risk is mitigated by an effective foreign exchange purchase policy, whereby purchases for a minimum of three and a maximum of twelve months are covered by forward currency contracts in which the Company's ultimate parent is the counterparty. The Company also monitors item profitability and has an effective pricing strategy to ensure it trades profitably.
3.Supply chain disruption risk due to Russia-Ukraine War
There have been significant developments in terms of supply chain disruption due to the ongoing conflict, staff shortages with our suppliers and also in sourcing ingredients. The Company has maintained long term relationships with key suppliers to secure the supply of the majority of our product range. The Company is also maintaining higher inventory levels to help mitigate supply chain disruption risk for the foreseeable future.
There have been significant developments in terms of supply chain disruption due to the ongoing conflict, staff shortages with our suppliers and also in sourcing ingredients. The Company has maintained long term relationships with key suppliers to secure the supply of the majority of our product range. The Company is also maintaining higher inventory levels to help mitigate supply chain disruption risk for the foreseeable future.
4.Inflation risk
The Company is not immune to the impact of inflation on inventory procurement. The Company maintains an effective foreign exchange purchase policy by way of forward contracts for the majority of its product procurement. Some of the increased cost will be passed onto customers in future to help mitigate inflation risk.
The Company is not immune to the impact of inflation on inventory procurement. The Company maintains an effective foreign exchange purchase policy by way of forward contracts for the majority of its product procurement. Some of the increased cost will be passed onto customers in future to help mitigate inflation risk.
This report was approved by the board and signed on its behalf.
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CLASSIC FINE FOODS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The directors present their report and the financial statements for the year ended 30 September 2025.
The directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The loss for the year, after taxation, amounted to £4,097,000 (2024 - loss £1,620,000) .
The directors do not recommend the payment of a dividend for the year (2024: £nil).
The directors who served during the year were:
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CLASSIC FINE FOODS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Greenhouse gas emissions and energy consumption
We believe in respecting the environment and conducting our business in responsible way. The success of our business over the long term depends on the environmental sustainability of our operations, the resilience of our supply chain and our ability to manage climate change impacts.
1.UK Energy Use
A.Energy Consumption
i.Renewable Energy - 1,191,387.20 kwh
ii.Non Renewable Energy - 61,127 kwh
B.Transport
i.Fleet Fuel Consumption: 280,376.05 litres of diesel
ii.Company Car Fuel Consumption: 15,731.08 litres of diesel
2.GHG emissions
i.Scope 1: 782.28 tons of CO2 e
ii.Scope 2: 10.81 tons of CO2 e
iii.Total GHG emissions: 793.69 tons of CO2 e
3.Emission Intensity
i.1.51 tons of CO2 e per £.
Energy Efficiency action:
Scope 1 emissions increased by 47% compared to the baseline year, primarily due to increased business activity. The new facility did not require any refrigeration gas refills during the reporting period; therefore, emissions from refrigerant top-ups are recorded as zero.
Scope 2 emissions decreased significantly by 87%, driven by the adoption of green energy tariffs, installation of rooftop solar panels, and other energy efficiency measures. The new facility was designed with sustainability in mind, incorporating smart motion sensors and an efficient lighting system to further reduce energy consumption and emissions.
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CLASSIC FINE FOODS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Going Concern
The net current liabilities as at 30 September 2025 were £9,730,000 (2024: £4,577,000), the loss for the year after tax was £4,097,000 (2024: £1,620,000) and the cash position was £1,573,000 as at 30 September 2025 (2024: £2,193,000). The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
The directors have prepared cash flow forecasts to September 2027, being a period of more than 12 months from the date of approval of these financial statements. The forecasts project that the company will have sufficient funds through trading and through funding receivable from group companies, Metro AG and Klassisk Investment Ltd, to meet its liabilities as they fall due for that period.
Those forecasts are dependent on Metro AG not seeking repayment of loan balances repayable within the review period by the company which at 30 September 2025 amounted to £9,004,479 and on Metro AG providing any necessary additional financial support during that period. Metro AG has indicated its intention to continue to make available such funds as are needed by the company, and that it does not intend to seek repayment of the amounts due at the balance sheet date, for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. The directors have made sufficient enquiries to conclude that Metro AG has sufficient financial resources to enable it to provide the required support.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The net current liabilities as at 30 September 2025 were £9,730,000 (2024: £4,577,000), the loss for the year after tax was £4,097,000 (2024: £1,620,000) and the cash position was £1,573,000 as at 30 September 2025 (2024: £2,193,000). The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
The directors have prepared cash flow forecasts to September 2027, being a period of more than 12 months from the date of approval of these financial statements. The forecasts project that the company will have sufficient funds through trading and through funding receivable from group companies, Metro AG and Klassisk Investment Ltd, to meet its liabilities as they fall due for that period.
Those forecasts are dependent on Metro AG not seeking repayment of loan balances repayable within the review period by the company which at 30 September 2025 amounted to £9,004,479 and on Metro AG providing any necessary additional financial support during that period. Metro AG has indicated its intention to continue to make available such funds as are needed by the company, and that it does not intend to seek repayment of the amounts due at the balance sheet date, for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. The directors have made sufficient enquiries to conclude that Metro AG has sufficient financial resources to enable it to provide the required support.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The auditors, Armstrong Watson Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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CLASSIC FINE FOODS UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC FINE FOODS UK LIMITED
We have audited the financial statements of Classic Fine Foods UK Limited (the 'Company') for the year ended 30 September 2025, which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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CLASSIC FINE FOODS UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC FINE FOODS UK LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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CLASSIC FINE FOODS UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC FINE FOODS UK LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, Including fraud and non- compliance with laws and regulatlons, was as follows:
• the senior statutory auditor ensured the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management and from our commercial knowledge and experience of the sector;
• we focussed on specific laws and regulations which we considered may have a direct materlal effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, employment, health and safety legislation and anti-money laundering regulations.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
• considering the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed anatytical procedures to identify any unusual or unexpected relationships;
• tested journal entries with specific attributes to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates;
• investigated the rationale behind significant or unusual transactions.
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CLASSIC FINE FOODS UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLASSIC FINE FOODS UK LIMITED (CONTINUED)
In response to the risk of irregularities and non- compliance with laws and regulations, we designed procedures
which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• enquiring of management as to actual and potential litigation and claims;
• review of legal expenditure incurred during the year to Identify Instances of non-compliance with laws and regulations;
• reviewing correspondence with HMRC.
which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• enquiring of management as to actual and potential litigation and claims;
• review of legal expenditure incurred during the year to Identify Instances of non-compliance with laws and regulations;
• reviewing correspondence with HMRC.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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.
Chartered Accountants & Statutory Auditors
Carlisle
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CLASSIC FINE FOODS UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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CLASSIC FINE FOODS UK LIMITED
REGISTERED NUMBER: 00207864
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2025
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CLASSIC FINE FOODS UK LIMITED
REGISTERED NUMBER: 00207864
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 30 form part of these financial statements.
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CLASSIC FINE FOODS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Classic Fine Foods UK Limited is a private company limited by shares incorporated in 1925 and is registered and domiciled in England and Wales.
These financial statements were prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" ("FRS 101") issued by the Financial Reporting Council.
The financial statements have been presented in Sterling (£) and rounded to the nearest thousand (£'000).
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards in conformity with the requirements of the Companies Act 2006 has set out below where advantage of FRS 101 disclosure exemptions has been taken.
These financial statements were prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" ("FRS 101") issued by the Financial Reporting Council.
The financial statements have been presented in Sterling (£) and rounded to the nearest thousand (£'000).
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards in conformity with the requirements of the Companies Act 2006 has set out below where advantage of FRS 101 disclosure exemptions has been taken.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the following disclosures:
a)Disclosure of the effects of new but not yet effective IFRSs.
b)Disclosures in respect of the compensation of Key Management Personnel
c)The requirements of IFRS 7 'Financial Instruments: Disclosures'.
d)The requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
i. paragraph 79(a)(iv) of IAS 1;
i. paragraph 79(a)(iv) of IAS 1;
e)The requirement of IAS 7 'Statement of Cashflows', this exemption requires that equivalent disclosures be included in the consolidated financial statements of the group in which the entity is consolidated.
f)The requirements in IAS 24 'Related Party Disclosures' to disclose material related party transactions entered into between two or more members of the group, provided that any subsidiary which a party to the transaction is wholly owned by such a member
g)The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details of indebtedness required by paragraph 61(1) of Schedule 1 to the Regulations is presented separately for lease liabilities and other liabilities, and in total.
The accounting policies set out below have been applied consistently to all periods presented in these financial statements. The financial statements are prepared on the historical cost basis except for currency derivatives which are stated at their fair value.
The following principal accounting policies have been applied:
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The net current liabilities as at 30 September 2025 were £9,730,000 (2024: £4,577,000), the loss for the year after tax was £4,097,000 (2024: £1,620,000) and the cash position was £1,573,000 as at 30 September 2025 (2024: £2,193,000). The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
The directors have prepared cash flow forecasts to September 2027, being a period of more than 12 months from the date of approval of these financial statements. The forecasts project that the company will have sufficient funds through trading and through funding receivable from group companies, Metro AG and Klassisk Investment Ltd, to meet its liabilities as they fall due for that period.
Those forecasts are dependent on Metro AG not seeking repayment of loan balances repayable within the review period by the company which at 30 September 2025 amounted to £9,004,479 and on Metro AG providing any necessary additional financial support during that period. Metro AG has indicated its intention to continue to make available such funds as are needed by the company, and that it does not intend to seek repayment of the amounts due at the balance sheet date, for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. The directors have made sufficient enquiries to conclude that Metro AG has sufficient financial resources to enable it to provide the required support.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The directors have prepared cash flow forecasts to September 2027, being a period of more than 12 months from the date of approval of these financial statements. The forecasts project that the company will have sufficient funds through trading and through funding receivable from group companies, Metro AG and Klassisk Investment Ltd, to meet its liabilities as they fall due for that period.
Those forecasts are dependent on Metro AG not seeking repayment of loan balances repayable within the review period by the company which at 30 September 2025 amounted to £9,004,479 and on Metro AG providing any necessary additional financial support during that period. Metro AG has indicated its intention to continue to make available such funds as are needed by the company, and that it does not intend to seek repayment of the amounts due at the balance sheet date, for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. The directors have made sufficient enquiries to conclude that Metro AG has sufficient financial resources to enable it to provide the required support.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Functional and presentation currency
Transactions and balances
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is perlodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate.
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The estimated useful lives range as follows:
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
Impairment of financial assets
Financial liabilities
Fair value through profit or loss
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.
Dilapidations provision
The company is subject to obligations, under leases, to maintain leasehold properties to an agreed standard and remove any alterations made to the property prior the termination of the lease. In determining the fair value of the provision, assumptions and estimates are made in relation to discount rates, the expected cost to dilapidate and the expected timing of those costs. In forming an appropriate estimate, management have obtained advice from an expert surveyor to identify suitable estimates.
Recoverability of trade recelvables
The company makes an estimate of the recoverable amount of trade receivables. Provision and write-offs have been made based on customer status, customer credit rating, the aging profile of debtors and historical experience. The total expected credit loss provision at 30 September 2025 was £70,000 (2024: £40,000).
Incremental borrowing rate
Upon entering a lease contract, the company considers the appropriate discount rate to use for the purpose of discounting future lease payments under the lease contract. The discount rate is assessed by reference to the company's incremental borrowing rate. As the company is funded by the wider Metro group, the group's incremental borrowing rate is applied in the assessment of the appropriate discount rate to apply.
The whole of the turnover is attributable to the principal activity of the company and arises mainly within the United Kingdom, from goods sold and is stated net of VAT, discounts, rebates and other sales taxes or duty.
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
9.Taxation (continued)
There are no factors which management consider with affect the applicate rate of taxation in future periods.
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CLASSIC FINE FOODS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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