Company No: 12410453 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Tangible assets	3	1,204,959		414,612
Investments	4	300		300
		1,205,259		414,912
Current assets
Stocks		106,908		58,950
Debtors	5	160,319		22,311
Cash at bank and in hand		4,108		86,461
		271,335		167,722
Creditors: amounts falling due within one year	6	( 1,002,870)		( 564,483)
Net current liabilities		(731,535)		(396,761)
Total assets less current liabilities		473,724		18,151
Creditors: amounts falling due after more than one year	7	( 592,363)		( 18,942)
Provision for liabilities		( 120,871)		( 67,352)
Net liabilities		( 239,510)		( 68,143)
Capital and reserves
Called-up share capital	8	100		100
Profit and loss account		( 239,610 )		( 68,243 )
Total shareholders' deficit		( 239,510)		( 68,143)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Knead Bakery Limited (registered number: 12410453) were approved and authorised for issue by the Board of Directors on 08 September 2026. They were signed on its behalf by:

Mr J S Hawes Director

Mr K L Biggs Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Knead Bakery Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Unit 2 Bellinger Close, Chippenham, SN15 1BN, United Kingdom. The principal place of business is Unit 13a, 19 Love Lane, Cirencester, Gloucestershire, FL7 1YG.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors note that the business has net liabilities of £239,510. The Company is supported through loans from the Parent Company. The directors have received assurances that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the Parent Company will continue to support the Company. After making enquiries, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Group accounts exemption

Group accounts exemption s400
The Company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Knead Bakery Limited is a subsidiary of Watermoor Meat Supply Limited and the results of Knead Bakery Limited are included in the consolidated financial statements of Watermoor Meat Supply Limited which are available from Unit 2 Bellinger Close, Chippenham, Wiltshire, England, SN15 1BN.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Finance costs

Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so 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.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	not depreciated
Leasehold improvements	depreciated over the life of the lease
Vehicles	4 years straight line
Fixtures and fittings	10 % reducing balance
Computer equipment	10 - 25 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through the Profit and Loss Account. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	52		37

3. Tangible assets

	Land and buildings		Leasehold improve- ments		Vehicles		Fixtures and fittings		Computer equipment		Total
	£		£		£		£		£		£
Cost
At 01 October 2024	60,081		85,122		50,470		372,755		16,941		585,369
Additions	0		708,407		21,643		226,387		10,772		967,209
Disposals	( 59,730)		0		0		0		0		( 59,730)
At 30 September 2025	351		793,529		72,113		599,142		27,713		1,492,848
Accumulated depreciation
At 01 October 2024	0		22,466		34,890		110,382		3,019		170,757
Charge for the financial year	0		64,860		13,261		36,992		2,019		117,132
At 30 September 2025	0		87,326		48,151		147,374		5,038		287,889
Net book value
At 30 September 2025	351		706,203		23,962		451,768		22,675		1,204,959
At 30 September 2024	60,081		62,656		15,580		262,373		13,922		414,612
Leased assets included above:
Net book value
At 30 September 2025	0		28,323		20,290		125,035		0		173,649
At 30 September 2024	0		0		0		56,201		0		56,201

4. Fixed asset investments

Investments in subsidiaries

	2025
	£
Cost
At 01 October 2024	300
At 30 September 2025	300
Carrying value at 30 September 2025	300
Carrying value at 30 September 2024	300

Investments in shares

Name of entity	Registered office	Principal activity	Class of shares	Ownership 30.09.2025	Ownership 30.09.2024	Held
Knead Bakery (Tetbury) Limited	Unit 13 a 19 Love Lane, Cirencester, Gloucestershire, United Kingdom, GL7 1YG	Dormant	Ordinary	100.00%	100.00%	Direct
Knead Bakery (Elkstone) Limited	Unit 13 a 19 Love Lane, Cirencester, Gloucestershire, United Kingdom, GL7 1YG	Dormant	Ordinary	100.00%	100.00%	Direct
Knead Bakery (Cirencester) Limited	Unit 13 a 19 Love Lane, Cirencester, Gloucestershire, United Kingdom, GL7 1YG	Dormant	Ordinary	100.00%	100.00%	Direct

5. Debtors

	2025		2024
	£		£
Trade debtors	1,282		4,866
Amounts owed by related parties	250		0
Amounts owed by directors	2,635		0
Prepayments	40,563		17,445
VAT recoverable	15,109		0
Deposits	40,750		0
Other debtors	59,730		0
	160,319		22,311

6. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans (secured)	135,411		17,538
Trade creditors	243,170		100,625
Amounts owed to Group undertakings	378,100		333,087
Amounts owed to directors	7,703		13,044
Accruals and deferred income	143,675		29,595
Taxation and social security	30,168		34,716
Obligations under finance leases and hire purchase contracts (secured)	53,351		29,233
Other creditors	11,292		6,645
	1,002,870		564,483

Bank loans of £135,411 (2025: £17,538) bear fixed and floating charges over the assets of the company.

Obligations under finance leases and hire purchase contracts of £53,351 (2024: £29,233) are secured over the assets to which they relate.

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

	2025		2024
	£		£
Bank loans (secured)	510,348		0
Obligations under finance leases and hire purchase contracts (secured)	82,015		18,942
	592,363		18,942

Bank loans of £510,348 (2024: £nil) bear fixed and floating charges over the assets of the company.

Obligations under finance leases and hire purchase contracts of £82,015 (2024: £18,942) are secured over the assets to which they relate.

8. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
80 Ordinary £1 shares shares of £ 1.00 each	80		80
20 Ordinary B shares shares of £ 1.00 each	20		20
	100		100

Both Ordinary £1 shares and Ordinary B shares hold equal voting and dividend rights in accordance with the shareholders agreement.

9. Related party transactions

Transactions with owners holding a participating interest in the entity

	2025		2024
	£		£
Watermoor Meat Supply Limited	378,100		333,087

Transactions with the entity's directors

	2025		2024
	£		£
Directors Loan Account (Creditor)	7,703		13,044

Advances

During the year a director maintained a Directors' Loan Account with the company. Advances of £nil (2024: £nil) and repayments of £nil (2024: £nil) were made on this loan. Interest is charged on the loan, when overdrawn, at the HMRC effective rate of interest, if exceeding a balance of £10,000. At the balance sheet date, the Director owed the company £1,000 (2024: £1,000). The loan is repayable on demand.

During the year a further director maintained a Directors' Loan Account with the company. Advances of £635 (2024: £nil) and repayments of £nil (2024: £nil) were made on this loan. Interest is charged on the loan, when overdrawn, at the HMRC effective rate of interest, if exceeding a balance of £10,000. At the balance sheet date, the Director owed the company £1,635 (2024: £1,000). The loan is repayable on demand.

Other related party transactions

	2025		2024
	£		£
Related party loan	250		0

10. Audit Opinion

The auditor's report on the accounts for the financial year ended 30 September 2025 was unqualified.

The audit report was signed by Philip Mills MSc BA ACA on behalf of Old Mill Audit Limited.

11. Ultimate controlling party

Parent Company:

Watermoor Meat Supply Limited

Unit 2 Bellinger Close, Chippenham, SN15 1BN, United Kingdom