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Registered number: 03577003
ALLIANCE IN PARTNERSHIP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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ALLIANCE IN PARTNERSHIP LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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ALLIANCE IN PARTNERSHIP LIMITED
CONTENTS
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Directors' Responsibilities Statement
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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ALLIANCE IN PARTNERSHIP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The directors present their strategic report and audited financial statements for the year ended 31 August 2025.
The principal activity of Alliance in Partnership Limited ("the Company") is the provision of catering services within the education sector.
Alliance in Partnership (AIP) provides a modern, progressive and bespoke catering service to schools within the United Kingdom.
In 2025 there was a trading loss for the year, after taxation, amounting to £2,572,935 (2024: £2,542,929). Trading volume increased through new contracts, but also negatively impacted costs as a result of mobilisation, coupled with high levels of inflation not fully recovered through the portfolio of contracts. The combination of these factors contributed to a loss for the year. Operational efficiencies were introduced throughout the year leading to an improvement in trading performance year on year.
Net liabilities amounted to £2,701,866 (2024: £128,931), with the impact of performance as noted above resulting in the reduction to the balance sheet.
Alliance in Partnership Limited's intermediate parent company AIP Catering Limited is 100% owned by Sodexo Limited.
Commitment to growth and sustainability comes in many forms for the Company across the ingredient and menu offer, staff development, school partnerships and supplier relationships. We provide many schools from local hub kitchens with nutritious, freshly prepared hot meals on a daily basis where the schools have no kitchen facilities on site, helping ensure that as many school children as possible have access to a hot meal each day.
Our focus is on the preparation and presentation of fresh food made from the finest raw ingredients, sourced locally where possible, and conforming to the government's nutritional guidelines and the School Food Plan. Our menus are nutritionally analysed using the industry's leading nutritional analysis software, Saffron, and aligned to our own recipe manual. This recipe manual ensures our employees have recipes, methods of work, portion sizes and the allergen content enabling us to provide healthy and nutritional food which enables pupils’ and students’ learning, helping them fulfil their potential. We encourage our customers to eat healthily while at the same time making our offer interesting, fun, and sustainable. We encourage our customers to interact with us and provide feedback and suggestions.
We work in partnership with schools to ensure we provide a service that best fits their requirements. Across our portfolio we ensure that we address all ethnically diverse food requirements. Our team of development chefs are continually creating new dishes and regularly visit our sites to promote taster menus and new concepts, ensuring our food offer is always fresh and vibrant.
Social value is a core principle and we take our corporate responsibilities on the environment, health and wellbeing, and sustainability seriously. We take every opportunity to reduce our carbon footprint and continue to focus on reducing single-use plastics by offering alternative products and innovative ideas such as hydration stations. In addition, we continue to use local and Fair trade products within our catering services, together with MSC fish, Red Tractor meat, free range eggs and chicken, all sourced from approved and audited suppliers. Our procurement team continues to develop our supply chain and all our suppliers must adhere to our Suppliers Code of Practice which includes traceability, quality and hygiene. Audits are completed by an independent auditor on a regular basis.
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ALLIANCE IN PARTNERSHIP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Business review (continued)
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Management has undertaken and continues to progress a programme of control environment improvements aimed at enhancing governance, control effectiveness, and process consistency across the business. This work forms part of the Company's ongoing commitment to continuous improvement and strong financial stewardship.
Through taking the environment, sustainability and health seriously we hold Bronze level of the prestigious Soil Association's Food for Life Catering Award. The Company holds various accreditations - IS0 9001 Management systems, ISO 14001 Environmental, ISO 18001 Occupational Health and Safety.
The Company expects to continue to provide catering services within the education sector for the foreseeable future.
In 2025, the Company undertook a full portfolio review of operations and client contracts, following a third successive year of losses, and has identified and implemented targeted actions to improve performance.
These operational enhancements will continue into 2026 and 2027, generating further improvements for the business.
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ALLIANCE IN PARTNERSHIP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Principal risks and uncertainties
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The Company is exposed to several principal risks and uncertainties, which are monitored and managed through its established risk management framework. The most significant risks that may adversely affect the Company’s financial performance, operations, and reputation are summarised below:
Food services and workplace safety risks
The health and safety of colleagues, clients, and customers is a core value of the Company. Strategic direction, performance measurement, and training are overseen by the Quality Safety Health & Environment (“QSHE”) Board. The Company has embedded a ‘Zero Harm Mindset’ culture, which is continuously monitored and enhanced through targeted actions across all operations.
Geopolitical and macroeconomic risks
Instability in macroeconomic, geopolitical, and UK political environments may expose the Company to fluctuations in the cost and supply of food, labour, and other goods. Many contracts include clauses that allow for price adjustments or menu changes. During periods of inflation, proactive planning for inflation recovery with clients, tariff management, cost optimisation, and securing supply at competitive prices are critical to maintaining margins.
Technology and information security risks
The Company is subject to external cyber threats, such as phishing and malware attacks, which have the potential to disrupt key systems, infrastructure, or compromise confidential data. Such incidents could impact the Company’s ability to deliver services. The Information & Security Committee provides oversight and direction for policies and controls designed to mitigate these risks and ensures that recovery plans are in place to minimise disruption in the event of a breach.
Competition and retention risks
The Company operates in a highly competitive marketplace where there is a risk that the Company could lose business to its competitors. The Company manages this risk by having a diversified portfolio of business, supported by innovation and service excellence. It focuses on building strong relationships with clients and customers to deliver high levels of retention and win new contracts.
Regulatory compliance risks
The Company is subject to a broad range of laws and regulations, including those relating to labour, corporate governance, health, safety, and the environment. Robust internal governance ensures compliance and effective management of regulatory changes. Anticipated changes in labour laws are closely monitored following recent government changes. The ‘Speak Up’ programme provides employees and partners with a confidential mechanism to report activities or behaviours that contravene the Company’s Code of Conduct or are unlawful.
Climate-related risks
The Company is exposed to various climate-related risks, including both physical and transition risks. Physical risks include drought, extreme temperatures, humidity changes and wider climate driven impacts on agriculture. Transition risks arise from evolving environmental regulations, technological changes, market expectations and reputational pressures. These risks are monitored at a Sodexo UK&I level through a structured governance framework in which climate matters are overseen via the ESG Committee. Further information can be found on our website: https://uk.sodexo.com /social-impact/planet /net-zero.
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ALLIANCE IN PARTNERSHIP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Service delivery and contractual compliance risks
The Company engages with a diverse portfolio of clients across multiple sectors. Non-compliance with contractual terms, including deficiencies in service delivery, may result in loss of business, reputational damage, and potential claims against the Company. To mitigate these risks, the Company operates a clearly defined suite of services and maintains a robust control framework that monitors service performance against contractual requirements.
People risks
As a people-centric organisation, the Company recognises that the growth, engagement, and retention of its workforce are central to achieving strategic objectives and sustainable growth. Insufficient attention to employee engagement, retention, and development may result in reduced service quality, diminished client satisfaction and retention, and the loss of talented employees to competitors.
The Company addresses these risks through comprehensive HR programmes, including training, performance management, strategic workforce planning, employee value proposition initiatives, and engagement surveys.
Financial key performance indicators
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We consider the key performance indicators of the business to be turnover growth and operating margin.
For the year to 31 August 2025 these were the following:
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Turnover increased by 4%, driven by increased trading volumes from new contracts, alongside the impact of inflationary increases, which were not fully recovered across the portfolio of contracts. For an analysis of operating margins, refer to the Business Review section of this report.
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This report was approved by the board and signed on its behalf.
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ALLIANCE IN PARTNERSHIP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The directors present their annual report and the financial statements for the year ended 31 August 2025.
Matters covered in the Strategic Report
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As permitted by paragraph 1A of Schedule 7 to the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the Directors’ Report have been omitted as they are included in the Strategic Report on pages 1 to 4. These matters relate to the business review, future developments, principal risks and uncertainties and financial key performance indicators.
The loss for the year, after taxation, amounted to £2,572,935 (2024: loss £2,542,929).
The directors do not recommend the payment of a dividend (2024: £Nil).
The directors who served during the year were:
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Amolak Dhariwal (appointed 1 January 2025)
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Tracey Smith (appointed 10 April 2025)
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Sean Haley (resigned 31 December 2024)
The financial statements have been prepared on a going concern basis, which the directors consider appropriate for the following reasons:
The Company is part of the Sodexo UK and Ireland group of companies (the “UK&I Group”), which in turn forms part of the wider Sodexo Group, headed by Sodexo S.A., a company incorporated in France. The UK&I Group’s principal activities include the provision of facilities management and catering services across various sectors such as government, healthcare, corporate services, sports and leisure and education. Accordingly, the Company’s cash flows are influenced by the continuity, volume, and pricing of these operations.
The Company meets its day-to-day working capital requirements through operational cash flows and intercompany loan arrangements within the UK&I Group. The UK&I Group has demonstrated resilience in the face of economic challenges. This has been achieved through disciplined cash and balance sheet management, strong contract retention, a diversified client base across both public and private sectors, and robust inflation management processes. Furthermore, the UK&I Group continues to pursue organic growth opportunities, with several new contracts in the pipeline. Nonetheless, it remains vigilant and prepared for potential macroeconomic changes through sound commercial management and prudent cost control.
In determining the appropriateness of the going concern basis, the directors have reviewed cash flow and profit forecasts for the UK&I Group covering a period of at least 12 months from the date of approval of these financial statements. These forecasts incorporate a severe but plausible downside scenario, which assumes a deterioration in gross margin due to operational challenges, a reduction in revenue from non-renewal of key contracts, and under recovery of inflation. In addition, this scenario does not factor in any mitigating actions that management could implement. Even under these conditions, the forecasts indicate that the UK&I Group would remain resilient.
The Company has net liabilities of £3,229,172 (2024: £890,885) and is dependent on the continued support of the UK&I Group and its ultimate parent company Sodexo S.A..
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ALLIANCE IN PARTNERSHIP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Going concern (continued)
Sodexo S.A., which currently holds a Baa1 credit rating from Moody’s Investors Service, has confirmed through a letter of support its intention to continue providing financial resources as the Company may require for a period of at least 12 months from the date of approval of the financial statements.
The directors have assessed the ability of Sodexo S.A. to support the Company.
Based on this assessment, the directors are confident that the Company will have sufficient resources to meet its obligations as they fall due for at least 12 months from the date of approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.
The Company made no political donations or incurred any political expenditure during the year (2024: £Nil).
Qualifying third-party indemnity provisions
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Qualifying indemnity insurance was in place for the directors during the year which was also in force at the date of this report.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 25 August 2026 and signed on its behalf.
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ALLIANCE IN PARTNERSHIP LIMITED
DIRECTORS’ RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 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, they have elected to prepare the financial statements in accordance with United Kingdom accounting standards and applicable law (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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ALLIANCE IN PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALLIANCE IN PARTNERSHIP LIMITED
Opinion
We have audited the financial statements of Alliance in Partnership Limited (the ‘Company’) for the year ended 31 August 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity 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 August 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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ALLIANCE IN PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALLIANCE IN PARTNERSHIP LIMITED (CONTINUED)
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors’ remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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ALLIANCE IN PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALLIANCE IN PARTNERSHIP LIMITED (CONTINUED)
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 7, 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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, general data protection regulation (GDPR), food safety and hygiene regulations and extended producer responsibility (EPR) regulations.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation and the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to: posting journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.
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ALLIANCE IN PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALLIANCE IN PARTNERSHIP LIMITED (CONTINUED)
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud;
∙Addressing the risks of fraud through management override of controls by performing journal entry testing; and
∙Perform cut-off testing on turnover to ensure revenue is recognised in the period in which it relates.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit 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.
Mandip Dosanjh (Senior Statutory Auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor
30 Old Bailey
London
EC4M 7AU
27 August 2026
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ALLIANCE IN PARTNERSHIP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025
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Interest receivable and similar income
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Interest payable and similar expenses
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Loss for the financial year
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There was no other comprehensive income for 2025 (2024: £NIL).
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The notes on pages 15 to 31 form part of these financial statements.
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All activities of the Company are classified as continuing.
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ALLIANCE IN PARTNERSHIP LIMITED
REGISTERED NUMBER: 03577003
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2025
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 31 form part of these financial statements.
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ALLIANCE IN PARTNERSHIP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
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The notes on pages 15 to 31 form part of these financial statements.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Alliance in Partnership Limited is a private company limited by shares and registered in England and Wales. The registered number is 03577003 and the registered office is One Southampton Row, London, WC1B 5HA.
The principal activity of the Company is the provision of catering services within the education sector.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The presentational currency of these financial statements is Pound Sterling (£). All amounts in the financial statements have been rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 33 Related Party Disclosures; and
∙the requirements of Section 29 Income Tax paragraph 29.28.
This information is included in the consolidated financial statements of Sodexo S.A. as at 31 August 2025 and these financial statements may be obtained from The Secretary, Sodexo S.A., 225 Quai de la Bataille de Stalingrad, 92130 Issy-Les-Moulineaux, France.
Other reduced disclosure exemptions taken in preparing these financial statements:
∙the requirements of Section 28 Employee Benefits in respect of multi - employer pension plans classified as defined benefit plans, paragraph 28.11.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis, which the directors consider appropriate for the following reasons:
The Company is part of the Sodexo UK and Ireland group of companies (the “UK&I Group”), which in turn forms part of the wider Sodexo Group, headed by Sodexo S.A., a company incorporated in France. The UK&I Group’s principal activities include the provision of facilities management and catering services across various sectors such as government, healthcare, corporate services, sports and leisure and education. Accordingly, the Company’s cash flows are influenced by the continuity, volume, and pricing of these operations.
The Company meets its day-to-day working capital requirements through operational cash flows and intercompany loan arrangements within the UK&I Group. The UK&I Group has demonstrated resilience in the face of economic challenges. This has been achieved through disciplined cash and balance sheet management, strong contract retention, a diversified client base across both public and private sectors, and robust inflation management processes. Furthermore, the UK&I Group continues to pursue organic growth opportunities, with several new contracts in the pipeline. Nonetheless, it remains vigilant and prepared for potential macroeconomic changes through sound commercial management and prudent cost control.
In determining the appropriateness of the going concern basis, the directors have reviewed cash flow and profit forecasts for the UK&I Group covering a period of at least 12 months from the date of approval of these financial statements. These forecasts incorporate a severe but plausible downside scenario, which assumes a deterioration in gross margin due to operational challenges, a reduction in revenue from non-renewal of key contracts, and under recovery of inflation. In addition, this scenario does not factor in any mitigating actions that management could implement. Even under these conditions, the forecasts indicate that the UK&I Group would remain resilient.
The Company has net liabilities of £3,229,172 (2024: £890,885) and is dependent on the continued support of the UK&I Group and its ultimate parent company Sodexo S.A.. Sodexo S.A., which currently holds a Baa1 credit rating from Moody’s Investors Service, has confirmed through a letter of support its intention to continue providing financial resources as the Company may require for a period of at least 12 months from the date of approval of the financial statements.
The directors have assessed the ability of Sodexo S.A. to support the Company.
Based on this assessment, the directors are confident that the Company will have sufficient resources to meet its obligations as they fall due for at least 12 months from the date of approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
−the Company has transferred the significant risks and rewards of ownership to the buyer;
−the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
−the amount of revenue can be measured reliably;
−it is probable that the Company will receive the consideration due under the transaction; and
−the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
−the amount of revenue can be measured reliably;
−it is probable that the Company will receive the consideration due under the contract;
−the stage of completion of the contract at the end of the reporting period can be measured reliably; and
−the costs incurred and the costs to complete the contract can be measured reliably.
The Company's turnover represents the value of meals supplied during the year. Payment for these is either received in advance via cashless systems, on the day in cash, or later by invoicing to relevant bodies in respect of recorded meals sold. In all cases, turnover is recognised at the point of delivery of meals to recipients.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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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.
The estimated useful lives range as follows:
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 the Statement of Comprehensive Income.
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Client contractual arrangements
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Contractual arrangements with clients may provide for a financial commitment by the Company. For example, the Company may agree to finance the purchase of equipment or fixtures on the client site that are necessary to fulfil service obligations, or it may make an upfront financial contribution. These contributions are recognised as an asset within accrued income at the inception of the contract, with a corresponding provision within other creditors, and released as a deduction from revenue over the life of the contract. The provision is offset against any purchase of equipment, or upon invoicing from the customer. The amortisation period is in line with the contract duration but may be amortised over a longer period if the contract duration permits.
At each reporting date, the Company reviews the carrying value of its fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset, for which the estimates of future cash flows have not been adjusted. Any resulting changes are recognised in the Statement of Comprehensive Income in the period to which they relate.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term.
Assets obtained under hire purchase contract and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payments obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Multi-employer pension plans
The Company contributes to various local government pension schemes on behalf of its employees. It is not possible or practicable for the Company to obtain sufficient information to enable it to account for the plans as defined benefit plans and it therefore accounts for the plans as a defined contribution plans.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income 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 income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
-The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
-Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest 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. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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 objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
The estimates and judgements that have the most material impact on the financial performance and position of the Company are as follows:
(i) Impairment of trade debtors
Provision is made for doubtful trade debtors. This provision requires management's judgement as to whether circumstances exist which indicate that trade debtors may not be recoverable in full. This judgement is considered to be material on account of the balance of trade debtors being material to the Company's Statement of Financial Position.
(ii) Tangible fixed assets
The Company uses various tangible fixed assets to support the delivery of its services to clients. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. Accounting policies for depreciation are intended to reflect management's estimation of the useful lives of the Company's tangible fixed assets. Management periodically reviews these estimates to ensure they remain appropriate.
The whole of the turnover is attributable to the Company's principal activity and is derived from the provision of catering services within the education sector. All turnover arose within the United Kingdom.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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The operating loss is stated after charging:
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Depreciation of tangible fixed assets: owned by the company
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Depreciation of tangible fixed assets: on finance leases
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Loss on disposal of tangible fixed assets
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During the year, the Company obtained the following services from the Company's auditor:
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Fees payable to the Company's auditor for the audit of the Company's financial statements
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Staff costs, including directors' remuneration, were as follows:
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The average monthly number of employees, including the directors, during the year was as follows:
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Direct labour and supervision
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 4 directors (2024 - 3) in respect of defined contribution pension schemes.
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The amounts disclosed for directors' remuneration represent an allocation of total UK&I director remuneration. The Company's directors are remunerated through other entities in the group of companies headed by Sodexo S.A. Directors' remuneration is allocated to the Company based on the proportion of a directors' time spent concerning matters relating to the Company.
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Interest receivable and similar income
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Interest receivable from group undertakings
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Interest receivable from bank
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Interest payable and similar expenses
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Finance leases and hire purchase contracts
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Adjustments in respect of previous periods
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
11.Taxation (continued)
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Factors affecting tax charge for the year
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The tax credit for the year is higher than (2024: lower than) the standard rate of corporation tax in the UK of25% (2024 : 25%). The differences are explained below:
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Loss on ordinary activities before tax
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Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 : 25%)
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Expenses not deductible for tax purposes
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Adjustments to tax charge in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
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The Company is a member of the Sodexo S.A. Group which is expected to be a MNE (Multi National Enterprises) within the scope of the OECD Pillar Two model rules. The Group has carried out preliminary work and does not anticipate any significant impact from this measure on its UK subsidiaries. As at 31 August 2025, no deferred tax has been recognised in application of the amendment to FRS 102 concerning the mandatory exemption from recognition of deferred tax in the financial statements in relation to Pillar Two income tax.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Charge for the year on owned assets
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The net book value of assets held under finance lease agreements is £Nil (2024: £Nil).
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Raw materials and consumables
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Stock recognised in cost of sales during the year as an expense was £8,681,359 (2024: £9,093,707).
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Debtors: Amounts falling due within one year
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Due after more than one year
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Amounts owed by group undertakings
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Amounts owed by parent undertakings
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Prepayments and accrued income
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Amounts owed by fellow subsidiary undertakings
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Deferred taxation (note 16)
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Amounts owed by parent, group and fellow subsidiary undertakings are repayable on demand and unsecured. Included within amounts owed by group undertakings is £385,347 (2024: £Nil) of cash held within the group's cash pooling facility which bears interest at variable rates.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Creditors: Amounts falling due within one year
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Amounts owed to parent undertakings
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Amounts owed to group undertakings
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Amounts owed to fellow subsidiary undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to parent, group and fellow subsidiary undertakings are repayable on demand and unsecured.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Credited to Statement of Comprehensive income (see note 11)
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The deferred tax asset is made up as follows:
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Accelerated capital allowances
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Short term timing differences
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Authorised, allotted, called up and fully paid
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5,850 (2024 : 5,850) Ordinary shares of £1.00 each
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The Company has one class of ordinary shares and each share carries one voting right per share, but no right to fixed income.
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Other reserves
Other reserves includes the nominal value of own shares purchased.
Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.
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Related party transactions
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The Company is exempt under the terms of FRS 102 from disclosing transactions with entities that are wholly-owned members of the Group headed by Sodexo S.A.
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ALLIANCE IN PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
The Company's immediate parent company is AIP Catering Limited, a company registered in England and Wales, by virtue of its ownership of 100% of the share capital of Alliance in Partnership Limited. AIP Catering Limited is wholly owned by Friars 702 Limited.
The Company's ultimate parent company and controlling party is Sodexo SA, a company incorporated in France. This is the smallest and largest group of undertakings for which consolidated financial statements are prepared. Copies of the consolidated financial statements can be obtained from The Secretary, Sodexo SA, 225 Quai de la Bataille de Stalingrad, 92130 Issy-Les-Moulineaux, France.
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