The director presents the strategic report for the year ended 28 February 2026.
The principal activity of the group is the specialized manufacturing of beefburgers and other meat products, supplying a network of distributors throughout the country. Over the years, the group has cultivated a significant following for its branded products and has also excelled in manufacturing private label products for national cash and carry outlets and wholesale distributors. This dual focus has enabled the group to establish a robust market presence and meet diverse consumer needs.
Key Performance Metrics
The Group's key performance metrics are:
FY26 FY25 %Change
Turnover £62,350,109 £54,340,687 +15%
Gross Profit £2,762,764 £11,918,790 -77%
Net (Loss)/Profit Before Tax (£3,777,490) £5,317,527 -171%
The financial year was characterised by unprecedented and exceptionally rapid inflation across manufacturing beef and other key raw material inputs, including packaging and operational costs. Although turnover increased significantly during the year, reflecting strong underlying customer demand and increased production volumes, profitability was materially impacted by the speed and scale of cost inflation experienced throughout the sector.
As part of the group strategy, the group supported long-standing customer relationships by maintaining continuity of supply during a period of exceptional market volatility. Due to pricing lag within larger national customer accounts operating fixed menu cycles and agreed pricing periods, increases in raw material costs could not immediately be fully recovered through selling prices.
Despite this temporary margin compression, the group continued to operate normally throughout the year, maintaining strong production levels, high technical standards and uninterrupted supply to customers across the UK and export markets.
During the latter part of the financial year and into the first quarter of FY27, revised customer pricing was successfully implemented across the majority of accounts, bringing selling prices back into closer alignment with raw material costs. Trading performance and margins have subsequently improved and the directors are encouraged by the return to profitability in the early part of FY27.
The directors remain confident in the long-term strength of the business, supported by continued investment in manufacturing capability, strong supplier and customer relationships, recognised product quality standards and the growing reputation of the Paragon brand across both UK and European markets.
The group operates in a competitive market, which presents several principal risks and uncertainties. Key risks include fluctuations in raw material prices, which can impact production costs and profit margins. Regulatory risks also pose challenges, as changes in food safety and manufacturing standards may necessitate significant adjustments to processes and products. Additionally, increasing consumer awareness and regulatory pressure on sustainability practices require continuous efforts towards environmentally friendly operations.
To mitigate these risks, the group employs strategic sourcing, maintains high standards of quality control, invests in technology to improve efficiencies, and continuously monitors market trends to adapt its product offerings.
Reliance on a network of distributors introduces the risk of dependency on third-party performance, which the group addresses through robust relationship management and diversification of its distribution channels.
Overall, while these risks present challenges, the group remains proactive in its risk management strategies to ensure resilience and sustained growth.
The directors of the company, as those of all UK companies, must act in accordance with a set of general duties. These duties detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
A director of a company must act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:
1. The likely consequences of any decisions in the long term:
The group's main strategic decisions in the year where those that resulted in decisions to continue to invest in automating and upgrading equipment and machinery and develop its people and processes to enable it to be competitive for the short, medium and long term.
2. The interest of the group's employees:
Investment is not only in machinery but also in its people and processes to ensure staff's training and development needs are met.
3. The need to foster the group's business relationships with suppliers, customers and others business relationships:
We work closely with our suppliers to ensure a continuous, high-quality flow of raw materials. Concurrently, we closely monitor raw material prices and market trends. By maintaining transparent communication with our supply partners and tracking input costs, the group ensures it can sustainably add an appropriate margin to sales. This approach allows us to deliver fair value to our end customers while protecting the financial health and long-term success of the business.
4. The impact of the group's operations on the community and the environment:.
Investment in equipment, and processes will lead to increased efficiencies in the use of energy which will reduce our impact on the environment both locally and on a nationally.
5. The desirability of the group maintaining a reputation for high standards of business conduct:
The group prides itself on its professional reputation. We are regularly audited by external bodies to ensure compliance with all relevant food hygiene legislation.
6. The need to act fairly as between stakeholders of the group.:
Fairness and equality are important to the group, we work with members at all levels and promote a good working relationship between all colleagues.
On behalf of the board
The director presents his annual report and financial statements for the year ended 28 February 2026.
The results for the year are set out on page 10.
No ordinary dividends were paid in the current year or prior year. The director does not recommend payment of a further dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Neither the company or the group have made qualifying third party indemnity provisions for the benefit of its directors in the year.
The group continues to perform research and development activities in the pursuit of achieving greater efficiencies in the packaging, distribution and logistical management of products.
There have been no material events since the balance sheet date which would require adjustment to, or disclosure in, the financial statements.
The group anticipates that turnover will remain consistent during the 2026/27 financial year, but profitability to improve as raw materials prices have stabilised, and price increases were implemented during the year.
Following the year end, one of the group's subsidiaries, XPO-Online Ltd, commenced the rollout of its initial service offering and the directors expect trading to increase during the 2026/27 financial year. The business remains in its early stages of development and management's focus is on achieving sustainable growth while maintaining a disciplined approach to costs. The directors are encouraged by the progress made to date and remain confident in the long-term prospects of the business.
Carbon Neutral Britain Limited have provided a Carbon (GHG) Emissions Report for Paragon Quality Foods Limited. As this is the group's principal consumer of energy and producer of emissions this report has been used for group energy and carbon reporting purposes.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee.
In order to further reduce carbon emissions the group is targeting increased energy efficiency measures including, but not limited to, energy efficient lighting and the increased use of renewable energy sources such as solar panels as well as enhancing waste separation processes.
The group has been certified as a Carbon Neutral Business by Carbon Neutral Britain Limited.
Credit risk
The group's principal financial assets are bank balances, cash, stock and trade debtors. These represent the group's maximum exposure to credit risk in relation to financial assets. The credit risk is primarily attributable to its trade debtors. The risk is managed by having a strict credit policy and effective credit rating of prospective customers. The amounts presented in the balance sheet are net of allowances for doubtful debts estimated by the group's management based on prior experience and their assessment of the current economic environment.
Liquidity and Cash flow risk
The directors do not consider that the group is exposed to significant liquidity or cash flow risk due to the diversity of the customer base as well as its liquid reserves.
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 auditor of the company 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 auditor of the company is aware of that information.
United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Standard applicable in the UK and Republic of Ireland'. Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Paragon Property Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2026 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the group's and parent 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 director either intends to liquidate the group or parent company or to cease operations, or has no realistic alternative but to do so.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
we identified the laws and regulations applicable to the group and parent company through discussions with directors and other management, and from our commercial knowledge and experience of the manufacturing and supply sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and parent company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the group's and parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries selected on a risk criteria basis to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions; and
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to any actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The notes on pages 17 to 32 form part of these financial statements.
The notes on pages 17 to 32 form part of these financial statements.
The notes on pages 17 to 32 form part of these financial statements.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £348,715 (2025 - £215,587 profit).
Paragon Property Investments Limited (“the company”) is a private limited company limited by shares, domiciled and incorporated in England and Wales. The registered office is Unit D Herons Way, Balby, Doncaster, South Yorkshire, United Kingdom, DN4 8WA.
The group consists of Paragon Property Investments Limited and all of its subsidiaries.
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 company has taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements as these consolidated financial statements are publically available therefore the company is a qualifying entity for the purposes of FRS102:
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: the company has taken advantage of the exemption under FRS 102 paragraph 33.1A and has therefore not disclosed transactions or balances with wholly owned members of the group, nor key management personnel compensation.
The consolidated group financial statements consist of the financial statements of the parent company Paragon Property Investments Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 28 February 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
The director has carefully considered the current economic climate, including the effects of inflation and the broader economic conditions on the parent company and group's cash flow and forecasts. Based on this evaluation, the director is confident that group possesses sufficient resources to meet its obligations and operate sustainably for the the foreseeable future. The group's strong net asset position further supports this conclusion. Accordingly, the financial statements have been prepared under the going concern basis.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
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 dispatch 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.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group 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. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 group 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 group 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
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 group’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 if, and only if, there is 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.
In the application of the group’s accounting policies, the director is 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:
The director is required to determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and, where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. The director identified no impairment indicators at year-end.
A rebate accrual has been calculated based on actual customer sales activity and related rebate agreements in place with customers. These sales activity is taken over a historic period at the point of rebate calculation. The director has determined that rebates are appropriately provided for at year-end.
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:
Management estimate the proportion of direct wages and overheads to be absorbed into stock cost based on production rates over the year. Stock cost is subsequently considered as to whether any stock provisions are needed based on the age and quality of stock held.
Recoverability of trade debtors is regularly reviewed in light of the available economic information specific to each debtor and specific provisions are recognised for balances considered to be irrecoverable.
The group’s investment properties are held at fair value. The director has exercised his judgment in determining the fair value of these properties as at 28 February 2026. In making this judgment, the director has taken into account current market conditions and recent comparable transactions for similar properties. The director concluded that the carrying value of the investment property in the financial statements was not materially different, and no fair value adjustment has been made in the current year.
The whole of the turnover is attributable to the principal activity of the group, and substantially arose in the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The director is employed and remunerated by one of the groups subsidiaries, Paragon Food Service Limited, due to this being the company that transacts wholly with external customers.
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
The group has tax losses of approximately £10.1m (2025 - £10.1m) carried forward which may be offset against future taxable profits in the parent undertaking. No deferred tax asset is recognised in respect of these losses as the timing of their future use is uncertain.
The current year losses will be offset against the prior year tax profits through a carry-back relief. As a result, a current tax receivable has been recognised, with no deferred tax component arising from the current year losses.
A fair value assessment, taking into account current market conditions and recent comparable transactions for similar properties, was carried out by the director on 28 February 2026. The director concluded that the carrying value of the investment property in the financial statements was not materially different, and no fair value adjustment has been made in the current year.
Details of the company's subsidiaries at 28 February 2026 are as follows:
Stock recognised in cost of sales during the year as an expense was £53,733,949 (2025: £36,587,890)
Transactions with group companies are conducted at arms length and are repayable on demand.
Transactions with group companies are conducted at arms length and are repayable on demand.
The group operates an invoice discounting facility which is secured against the trade debtors of the group. As at the year end the balance of £4,391,389 is shown within other creditors (2025: £Nil).
The following are the major deferred tax liabilities and assets recognised by the group and company:
The group operates a defined contribution pension scheme. The assets of the scheme are held separately to the company in an independently administered fund.
No events after the reporting date have occurred that require disclosure.
During the year the group made sales of £359,514 (2025: £441,405) to Urban Burgers Group Limited, a company of which M Pekin is a minority shareholder and his daughter is a director. At the year end the company was owed £54,463 (2025: £16,397).