The directors present the strategic report for the period ended 30 June 2025.

The principal activity of Laila's Fine Foods Limited ("LFF", "the company") continues to be the production of high-quality, hand-made chilled and frozen private-label ready meals for both the retail and foodservice sectors. There have not been any significant changes in the company's principal activities in the period under review. The directors are not aware of any significant changes for the year ahead.

The Company strives to remain a leading supplier of meals which are delivered through innovation and the desire to deliver benefit to all its stakeholders. The company continues to invest in research and development, resulting in improvements to existing products as well as new methodology. The directors regard R&D investment as necessary for continuing success in the medium to long term future by delivering sales growth through investment in organic growth drivers such as new product development and expansion in high growth markets.

The business continues to operate in a challenging environment with the legacy of recent years from Covid, Brexit and cost inflationary pressures. The family-led structure of the business enables a focus on each of the core areas of the business by each of the Directors and ensures issues are dealt with at the highest level in a timely manner.

Sales for the 18 month period to June 2025 were £33,583,547 compared with £29,168,713 for the year ended 31 December 2023, a reduction of 23% on a pro rata basis. Gross margin for the 18 months was 13% compared to 13.7% for the prior year.

As with all food manufacturing businesses, the unprecedented global events of recent years have impacted the company's cost base, which has presented a principal risk for the company. Customers have been supportive in mitigating higher costs but the process of negotiating prices does take time and hence the business continues to monitor input costs closely to ensure we can react as quickly as possible.

Energy costs remain at higher levels than experienced prior to the war in Ukraine and we continue to work with our energy advisors to monitor this area, contracting as efficiently as possible.

The business continues to be reliant upon an improvement in trade and the continued support of creditors and funders, hence maintaining adequate cashflow and liquidity continues to be a principal risk of the business.

Note 1.2 on page 13 provides further information.

Turnover for the 18 month period is down 23% on a pro-rata basis when comparing to the prior year. Gross margin was down from 13.7% in the prior year to 13% in the 18 months to June 2025 mainly due to higher labour costs. Administrative expenses were down 10.9% when comparing the 18 months to June 2025 with the prior year. This resulted in an operating loss of £932,062 compared to a profit in the prior year of £58,273.

Other performance indicators

The Board formally reviews the performance of the business monthly with reference to the management accounts, the trends of current performance compared to historic performance, and current performance compared to budget.

Key indicators are turnover, gross margin, gross margin percentage, people costs, EBITDA (Earnings before interest, tax, depreciation and amortisation) and cash headroom.

The management team monitors performance on a daily and weekly basis, ensuring that a balanced set of metrics is reviewed, that highlight if performance is meeting expectations. These are then used to focus on improvement activity. Targets are reviewed as appropriate to drive continuous improvement.

The most recent forecasts show that the company is expecting to see an improvement in sales performance with new and existing customers and a return to profitability. We have critically reviewed these forecasts and will continue to monitor them against actual monthly performance.

Capital Investment

There was capital investment of £185,659 during the year.

Cash flow and financing

The Cash in hand was £4,551 (2023 : £14,071).

Funding from our principal lender WeDo Finance including invoice finance and loan balances was £9,326,161 (2023 : £8,231,236)

Future Developments

The year to June 2026 has been another challenging year for the business and whilst a significant amount of new business was won during the year, this was offset by a large contract concluding during the year.

The Board has continued to focus on growing the customer base and expanding with existing customers and the Company has a healthy pipeline of new and potential new business which is anticipated to deliver growth and profitability for the year to June 2027.

We continue to focus on excellent customer relationships and delivery quality and innovation to help our customers maintain and expand their market position.

Going concern

These financial statements have been prepared on a going concern basis. The Directors have a reasonable expectation that the company will continue in operational existence from the foreseeable future, however they are aware of certain material uncertainties which may cast significant doubt over the company's ability to continue as a going concern. See note 1.2 for further details.

On behalf of the board

The directors present their annual report and financial statements for the period ended 30 June 2025.

The principal activity of the company continued to be that of ready prepared meals for the food service and retail market.

The results for the period are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Future developments

In accordance with s414(c)(11) of the Companies Act, included in the strategic report is information relating to the future developments of the business which would otherwise be required by schedule 7 of the "Large and Medium Sized Company's (Accounts and Reports) Regulations 2008" to be contained in the directors report.

Liquidity risk

The business relies upon bank and other funding to provide the necessary working and fixed capital funding for the business. A combination of long, medium, and short term debt is utilised to provide appropriate funding for the business based on cash projections. The Board continues to monitor cash projections and working capital facilities to ensure that there are sufficient short and medium term facilities in place to meet the day to day and longer term business needs.

Interest rate risk

The business has long and short term bank borrowings which carry variable interest rates. Other loans are split equally between variable and fixed rate debt to provide a balance of both risk management and opportunity to take advantage of lower base rates where possible.

Foreign currency risk

The business has very limited direct exposure to the Euro through purchases, these are currently at a level that do not pose a significant threat to the business and hence no specific hedging activities are in place for foreign currency exposure. Raw materials are generally sourced from UK suppliers billing in sterling but prices can experience some fluctuation due to underlying currency movements. The business monitors raw material pricing closely and maintains a database of multiple potential suppliers to ensure that buying is at the best price achievable.

The company undertakes a significant amount of development of new products and processes to ensure that the products we offer to customers are innovative, distinctive and of the highest standards of presentation.

The auditor, Sumer Auditco Limited, was appointed in the period and is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

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

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

- select suitable accounting policies and then apply them consistently;

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

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

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

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of business review and likely future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Laila's Fine Foods Limited (the 'company') for the period ended 30 June 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its loss for the period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Material uncertainty related to going concern

We draw attention to Note 1.2 in the financial statements, which describes the Company's ability to continue as a going concern.

As at 30 June 2025, the Company had net liabilities of £4.9 million and incurred a loss after tax of £1.7 million for the year then ended. The Company also had significant trade creditor and tax liabilities and is reliant upon invoice finance facilities to support its working capital requirements.

The directors' going concern assessment is dependent upon, amongst other matters, the achievement of forecast turnover of £28.3 million, an improvement in gross margins, the successful launch of new products and the continued availability of the Company's invoice finance facilities. The forecasts indicate limited cash headroom during the period covered by the assessment.

These events or conditions, along with the other matters set out in Note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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 our audit:

• the information given in the strategic report and the directors' report for the financial period 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.

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.

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to health and safety, employment, data and environmental protection.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Laila's Fine Foods Limited is a private company limited by shares incorporated in England and Wales. The registered office is 91 Moor Park Avenue, Bispham, FY2 0LZ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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 financial instruments at fair value. The principal accounting policies adopted are set out below.

The food manufacturing industry has continued to face a number of challenges on the back of Covid and Brexit with staff availability, transport issues and cost inflation being significant factors in recent years.

The company has reported a loss before tax of £1,680,204 in the 18 months ended 30 June 2025 as a result of lower sales volumes and higher direct labour costs and had a net liability of £4.931,201. A further loss was made in the year to June 2026.

The company has a number of new business opportunities that it has been working on with existing and new customers and has seen improvements in labour efficiency and productivity following a review in this area.

The previous facilities with Barclays Bank were refinanced with Charles Street Finance post year end and the company’s external borrowing is with three principal lenders, Wedo Finance, Charles Street Finance and Blackpool Council.

WeDo Finance continue to provide additional finance to the company. The existing facilities include invoice financing facilities and loan funding. Wedo Finance have confirmed their intention for these facilities to remain in place for a period of at least 12 months. The Directors expect to comply with the terms of the above finance agreements.

The company has prepared forecasts through to June 2028. These forecasts anticipate an improvement in profitability and cash flow performance. The Directors are dedicated to putting appropriate resources in place to achieve these targets.

In making their going concern assessment the Directors assume that:

• the loan facilities will continue under the same terms for at least 12 months following the approval of the financial statements:

• credit will continue to be provided by suppliers and HMRC under the existing agreed payment plans: and

• new product lines and customers will be introduced to increase the company's turnover.

Based on the above, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis but acknowledge that these conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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 pre-tax 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. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

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 current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

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.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Capital grants are amortised over the life of the assets of which they relate.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

There is a key judgement concerning the recoverability of the directors loan account balances. At the year end, balances totalling £1,211,849 (2023: £1,064,983) were included within other debtors as recoverable from directors. These debts are considered recoverable based on the value of personal assets owned by directors.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

At each year end the directors review the trade debtors and provide for balances deemed not recoverable. At the year end the trade debtors are stated net of a bad debt provision of £2,900 (2023: £465,108). During the year a bad debt expense of £Nil (2023: £197,552) was recognised in the profit and loss account.

The average monthly number of persons (including directors) employed by the company during the period was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

Freehold land and buildings were revalued in February 2014 by Duxburys Commercial, a firm of independent qualified surveyors. The main property was valued at £1,200,000. The valuation included non-depreciable land at a valuation of £420,000 and a cost of £384,984.

The revalued amount of £1,200,000 is to be considered as deemed cost from the date of transition to FRS 102.

The Invoice finance facility of £1,581,013 (2023: £7,252,642) and loans of £7,745,148 (2023: £978,594) included in other loans due to WeDo Finance are secured against the company's trade debtor balance and a third charge over the company's properties listed below. There is also a charge over the residential property of two of the directors. There are in addition personal guarantees of £750,000 provided by 5 directors of the company.

Other loans of £7,745,148 (2023: £978,594) are repayable on demand however WeDo finance have confirmed their intention for these facilities to remain in place for a period of at least 12 months.

Also Included in other loans is £388,849 (2023: £580,432) due to Blackpool Borough Council. This loan is secured by a second legal mortgage over the properties listed above. There is also a charge over the residential property of two of the directors. The loan is repayable in equal monthly instalments over 10 years from December 2018 with interest at 6.25% fixed.

The bank loans, except for the Bounce Back Loan of £11,664 (2023: £25,831), are secured by a first legal mortgage over property known as 81 Moor Park Avenue Blackpool, 91 Moor Park Avenue Blackpool, Unit 7 Bristol Avenue Blackpool, 210 Bristol Avenue Blackpool as well as a fixed and floating charge over the undertaking and all property and assets present and future.

A loan with carrying value at the year end of £373,675 is repayable within the next 12 months with the interest charged monthly at 1.9% over base.

A loan with carrying value at the year end of £134,135 is repayable in equal monthly instalments over 15 years from July 2017 with the interest charged at 1.75% over base.

A loan with carrying value at the year end of £11,664 is repayable in equal monthly instalments over 6 years from July 2020 with interest charged at 2.5% fixed.

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. As at the year-end, contributions due to the schemes in respect of the current reporting year were £46,665 (2023: £58,101).

All classes of share A- E have the same voting rights, and the rights to receive dividends, save that the directors may declare a dividend in respect of one class of share and not in respect of any other class of shares. Capital rights on distribution of assets on a winding up, or return of capital. Any surplus of assets after provisions for liabilities shall be distributed as follows: Firstly £0.005 on each A Ordinary share held, Secondly £0.004 on each B Ordinary share held, Thirdly £0.003 on each C Ordinary share held, Fourthly, £0.002 on each D Ordinary share held and lastly £0.001 on each E share held. Any surplus assets remaining thereafter shall be distributed pro rata amongst all shareholders.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

Transactions with related parties

The company has traded with a limited company, where a director of Laila's Fine Foods Limited is also a director and shareholder for the company. This company made sales to the related party of £Nil (2023: £14,672) and has a year end balance of £Nil (2023: £2,173). All transactions are at market value.

The ultimate controlling parties are L Remtulla and A Remtulla, based on their majority shareholding in Laila's Fine Foods Limited.