| MENAI MEATS (WALES) LIMITED |
| Strategic Report |
|
Sales turnover during the year was £73,046,182 which was an increase of 22.05% compared with £59,849,427 last year. Trading margins were 3.03% and the company's gross profit margin has decreased by 0.52 % compared to the previous year (2024: 3.55%).
However, the rate of sales growth did not translate proportionately into gross profit because of the low-margin nature of the wholesale meat sector and increased cost of sales.
Directors are optimistic that the future margins will be stable due to tighter cost cutting exercise and better internal controls in purchasing and selling activities. Being an essential goods company , the demand for the company's products has not decreased .During the financial year, the pandemic had affected both sales and purchase prices for the six months until the year end and also the following financial year.
The Company’s financial position remains sound. Net assets increased by £274,584 to £2,183,694 at 31 August 2025 (2024: £1,909,110), entirely through retained profits. Tangible fixed assets rose to £652,524 following £299,178 of capital investment in plant and machinery, while inventories increased to £390,520. Net current assets were £1,589,434 (2024: £1,534,883).
Working-capital management remains a central focus. Trade debtors were £3,067,095 and trade creditors were £5,276,291 at the year end, while the Company operated with a bank overdraft of £350,098. The directors will maintain close oversight of credit control, debtor ageing, supplier-payment commitments, stock levels, and short-term cash-flow forecasting.
The Director anticipates further positive growth in the company , building on its current success. |
|
| Key performance indicators |
| The key performance incdicaors are as follows: |
|
2025 |
2024 |
| £ |
£ |
| Turnover |
73,046,182 |
59,849,427 |
| Gross Profit |
2,214,644 |
2,122,926 |
| Gross Profit Margin |
3.03% |
3.55% |
| Profit before tax |
226,799 |
190,128 |
| Shareholder's funds |
2,079,212 |
1,909,110 |
|
| Principal Risk and Uncertainties Facing the Business |
|
| Competitor risks |
| Currently there is significant competition from other market leaders but due to the current standing of Menai Meats (Wales) Ltd being one of the industry leaders this reduces competitor risk. |
|
| Reliance on Key Suppliers |
| The company does not rely on any one key supplier due to the company's purchases are being sourced from all over the United Kingdom. |
|
| Economic downturn |
| The demand for Meat products will always remain strong in any economic climate and the directors are confident that the success of the company will remain no matter in what state the economy is. |
|
| Loss of key personnel |
| The structure of the company is robust enough to be able to compensate for any loss in key personnel. The company has been arranged in such a way that all key staff have in place a number of support staff that are competent enough to carry out and share all tasks that fall upon each department in the event of a loss of a head of department. |
|
| Health and Safety Regulations |
| The company recognizes that rigorous health and safety controls are fundamental to sustaining operational resilience and safeguarding stakeholder interests in the wholesale meat sector. We maintain full compliance with statutory obligations, including the Food Safety and Hygiene Regulations 2013 and General Food Law, by implementing robust procedures for safe handling, storage, and transport across our supply chain. Our traceability systems ensure all meat products meet legal requirements for origin and batch identification, supporting effective recall processes and customer assurance. Ongoing staff training in hygiene and food handling, together with periodic audit reviews by authorities, reinforce our commitment to maintaining industry best practices and minimizing risk exposure. Continuous investment in health and safety not only protects our workforce and customers, but also secures our financial performance and reputation in a highly regulated market. |
|
|
| This report was approved by the board on 30 September 2026 and signed on its behalf. |
|
|
|
| Amer Islam Choudhery |
| Director |
|
|
| 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. |
|
| 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 |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Judgements and key sources of estimation uncertainty |
|
The directors are required to make judgements, estimates and assumptions about the carrying amount 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 considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are review 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.
Stocks are stated in line with FRS102 which requires stocks to be measured at the lower of cost and estimated selling process less costs to complete and sell.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. The assets are estimated to lose their value at the following rates:
Plant and machinery - 25% reducing balance |
|
| 2 |
Analysis of turnover |
2025 |
|
2024 |
| £ |
£ |
|
|
Sale of goods |
73,046,182 |
|
59,849,427 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
30,057,249 |
|
20,196,050 |
|
Europe |
42,988,933 |
|
39,653,377 |
|
|
|
|
|
|
73,046,182 |
|
59,849,427 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Operating profit |
2025 |
|
2024 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
145,078 |
|
171,735 |
|
Auditors' remuneration for audit services |
6,000 |
|
3,750 |
|
|
|
|
|
|
|
|
|
| 4 |
Staff Costs |
|
|
Average number of employees during the year |
- |
|
- |
|
The company had no employees during the year. All personnel providing management and administrative services to the company, including its directors, were employed and remunerated by the parent undertaking. The parent undertaking recharged the company for relevant services through a management fee. As no individuals were employed under contracts of service by the company, the average number of persons employed by the company was nil. |
|
|
| 5 |
Taxation |
2025 |
|
2024 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
18,148 |
|
89,406 |
|
Adjustments in respect of previous periods |
- |
|
(134,528) |
|
|
|
|
|
|
18,148 |
|
(45,122) |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
38,549 |
|
(41,504) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit/(loss) on ordinary activities |
56,697 |
|
(86,626) |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
Profit on ordinary activities before tax |
226,799 |
|
190,128 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
56,700 |
|
47,532 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
115,655 |
|
(5,760) |
|
Capital allowances for period in excess of depreciation |
(154,207) |
|
47,634 |
|
Adjustments to tax charge in respect of previous periods |
- |
|
(134,528) |
|
|
Current tax charge for period |
18,148 |
|
(45,122) |
|
|
|
|
|
|
|
|
|
|
Deferred tax: origination and reversal of timing differences |
38,549 |
|
(41,504) |
|
|
Tax expense on profit on ordinary activities |
56,697 |
|
(86,626) |
|
|
|
|
|
|
|
|
|
|
| 6 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Plant and machinery |
|
|
|
|
|
|
|
|
At cost |
| £ |
|
Cost or valuation |
|
At 1 September 2024 |
1,016,000 |
|
Additions |
299,178 |
|
At 31 August 2025 |
1,315,178 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 September 2024 |
517,576 |
|
Charge for the year |
145,078 |
|
At 31 August 2025 |
662,654 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 August 2025 |
652,524 |
|
At 31 August 2024 |
498,424 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Stock |
|
|
Reconciliation of carrying amount of livestock |
| Sheep |
| £ |
|
At 1 September 2024 |
- |
|
Additions / purchases |
66,467,859 |
|
Livestock sold / transferred to cost of sales |
(66,077,339) |
|
Deaths, wastage and other write-downs |
- |
|
Impairment loss recognised |
- |
|
Reversal of impairment loss |
- |
|
Work in progress |
- |
|
At 31 August 2025 |
390,520 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
|
|
Trade debtors |
3,067,095 |
|
3,443,880 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
3,955,064 |
|
3,616,080 |
|
Other debtors |
121,210 |
|
178,694 |
|
|
|
|
|
|
7,143,369 |
|
7,238,654 |
|
|
|
|
|
|
|
|
|
|
| 9 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank overdrafts |
350,098 |
|
297,632 |
|
Trade creditors |
5,276,291 |
|
4,990,155 |
|
Corporation tax |
107,554 |
|
224,656 |
|
Other taxes and social security costs |
1,388 |
|
1,388 |
|
Directors account |
87,733 |
|
87,733 |
|
Accruals and deferred income |
128,468 |
|
119,381 |
|
|
|
|
|
|
5,951,532 |
|
5,720,945 |
|
|
|
|
|
|
|
|
|
|
The company has given an intercompany guarantee to the bank in respect of its parent company. At the year end the parent company had amounts due to the bank totalling £5,615,526 (2024: £5,864,897). |
|
|
No interest has been charged on the director’s loan balance during the year; the loan is interest-free and remains repayable on demand. |
|
| 10 |
Deferred taxation |
2025 |
|
2024 |
| £ |
£ |
|
|
Accelerated capital allowances |
162,746 |
|
124,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 September |
124,197 |
|
165,701 |
|
Charged/(credited) to the profit and loss account |
38,549 |
|
(41,504) |
|
|
At 31 August |
162,746 |
|
124,197 |
|
|
|
|
|
|
|
|
|
|
|
| 11 |
Share capital |
Nominal |
|
2025 |
|
2025 |
|
2024 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
100 |
|
100 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Profit and loss account |
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 September |
1,909,010 |
|
1,632,256 |
|
Profit for the financial year |
170,102 |
|
276,754 |
|
|
At 31 August |
2,079,112 |
|
1,909,010 |
|
|
|
|
|
|
|
|
|
| 13 |
Pak Mecca Meats Limited prepares consolidated financial statements for the group. Copies of the consolidated accounts are filed at Companies House and are available from the public record. |
|
| 14 |
Controlling party |
|
|
In the opinion of the directors Mr Mohammed Akram is the ultimate controlling party. Due to the fact Mr Akram is also a person with significant control in the parent company Pak Mecca Meats Ltd that holds 100% shareholdings of Menai Meats (Wales) Ltd from 01 July 2016. |
|
|
| 15 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
| 16 |
Legal form of entity and country of incorporation |
|
|
MENAI MEATS (WALES) LIMITED is a private company limited by shares and incorporated in England. |
|
|
| 17 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
168 City Road |
|
Cardiff |
|
CF24 3JE |
|
|
Principal place of business |
|
162 |
|
Bishop street |
|
Birmingham |
|
B5 7EJ |